International investors conference in Jerusalem
It is about to arrive. OurCrowd’s annual Jerusalem investor summit will take place this week.
The show is sold out. Participants are expected from over 150 countries, and I intend to meet a few of them at a client later on today. All for an operation that has been going less for a decade and will place investments from US$10,000 upwards. So what is the big deal?
The Globes newspaper answered the question very succinctly recently, and the article includes a full interview with the CEO, Jon Medved.
30,000 investors are registered in OurCrowd’s crowdfunding platform. Figures provided by the company to “Globes” show that in 2018 alone, the fund raised $400 million and invested in 80 companies: 24 new investments, 56 follow-on investments, and four investment funds. The fund was involved in 29 exits, the most prominent of which were BriefCam, sold for $90 million to Canon, and Jump, sold for $200 million to Uber. In 2019, OurCrowd has already been involved in the sale of Corephotonics to Samsung for $155 million.
I was stunned by a further set of stats I read in another paper over the weekend.
- OurCrowd relies on over 170 experts
- An investor will typically receive at least 5% of the shares of a company
- About 10% of the investors are Israeli.
- The average amount invested each time is around US$350,000. And a total of over US$1 billion has been raised to date.
- 3 companies have reached a valuation of over a US$1 billion. A further 37 are worth over US$100 million.
- And yes, 13 companies closed up.
I am somewhat stunned that others have not copied this model. There again, these numbers do explain why thousands of international investors, assumedly many from countries not normally associated with Israel, will be converging on Jerusalem this week.