Issuance of Equity Participation Units - HIVE - EMERGING TECHNOLOGIES FOR A SAFER FUTURE March 2021 - HIVE 2040
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PROPER DISCLOSURE AND FORWARD-LOOKING INFORMATION This presentation was prepared by HIVE 2040 (hereinafter: “The Fund") for the purpose of a general presentation about the fund, and therefore, the information contained therein is only a summary, and does not exhaust the full data about the fund and its activities. Therefore, this presentation does not describe the fund 's activities in full and in detail, and it is not intended to replace the need to review the fund’s public reports, including completion prospectus and off-page prospectus of the fund (the "prospectus"), which should be read in conjunction with the reports published by the fund, by virtue of law on the Tel Aviv Stock Exchange website and the Securities Authority website. The information contained in this presentation does not purport to encompass or contain any information that may be relevant for the purpose of making any decision regarding the investment in the securities of the fund. The fund though does not undertake to update or change the information contained in the presentation to reflect events or editing, processing, or segmentation different from the way the presentation is presented or changes that will occur after the date of preparation. This presentation contains forward-looking information, as defined in the Securities Law, 1968, including forecasts, assessments, estimates and other information regarding events and matters that will occur or may occur in the future, including in connection with the revenue and profitability forecast, the realisation of which is uncertain or controlled by the fund. Forward-looking information in the presentation is based on estimates and assumptions. The fund management as of the date of preparation of the presentation, which are inherently uncertain as they involve risks for the activities of the fund, and which are not controlled by the fund, each of which, or a combination of them, may harm the results of the fund's activities and in any case the realisation of the said assessments and forecasts. The presentation includes data and statistics published by third parties, Whose content has not been reviewed by the fund and .the fund is not responsible for their correctness. The information contained in the presentation does not constitute an offer or invitation to make offers for the purchase of the fund’s securities 2
INTRODUCTION HIVE 2040 is a research and development VC The fund was established by the Avnon Group, in collaboration fund to be lisited on the Tel Aviv stock exchange. with leading financial and strategic partners - like Migdal Group and Meitav Dash, experienced managers, entrepreneurs and experts with a proven track record in business development and promotion of technological advancement. The partnership will invest in innovative technology The fund’s team has vast experience in companies with high growth potential and experienced companies betterment, alongside an extensive staff, that operate in the Smart Economy and Public Safety history of Large-scale investments and leading domains, accelerating their exit in the foreseeable future. M&A’s and IPO’s. 3
FUND MANAGEMENT AVIAD GRINFELD CO-CEO AVI KOCHVA CO-CEO KOBI NIR CFO STACY DOTAN CMO Deputy President Avnon Group. CEO Avnon Fintech Division. Vast experience leading complex Member of the Board of international transactions, fund Directors at several of the Former Chief Credit Officer and Former commander of MAMRAM in raising and IPOs. Former M&A leader Avnon Group companies. BD Director for Bank Leumi. the IDF and holds the rank of full at IAI, CFO at Arkin Holdings Group Col. (retired). & Sol-Gel Technologies, leading Vast experience leading Member of the board for several pre - IPO marketing strategies. of the Avnon Group companies Former Global Account Manager at the IPO in NASDAQ. Board member and Chairman of Comparts ltd. HPE, Deputy CEO at Bank Hapoalim, of Sphera Global Healthcare & Previously led the marketing a member of the Management Investments Committee member & activities at Logic Industries B.A in Economics & Business Board and Head of the Innovation CFO at Accelmed. and business development Management and an MS in Law Division and Director on the Board at Crystal Systems Solutions from Bar Ilan University. B.A political science from of Isracard. University of Haifa, B.A Economics Formula Group. Member of the Advisory Board of & Accounting from The Hebrew several start-up companies. University and an MBA in Business Admin. & Financial Risk B.A. in Economics from the Bar-Ian Management from IDC Herzliya. University, MBA Graduate and PhD candidate at the ABS International University of Switzerland. 4
INVESTMENT COMMITTEE TOMER AVNON YOHANAN DANINO TAMIR PARDO CHAIRMAN OF THE BOARD Founder and CEO of the Avnon Group. Former Director of the Mossad Former Chief of the Israeli (2011-2016) – The national Over 32 years of proven experience in Police force, leading the Unit of intelligence agency of Israel and execution and delivery of large scale, International Crime, Intelligence one of the main entities in the international HLS projects. & Investigations Dept. Israeli Intelligence Community. Established his fist company, Former Chairman at Migdal Co-Founder and President of XM. tar ideal in 1989. Insurance Company. One of the most respected public Vast experience stablishing Senior Advisor at McKinsey figures in Israel and around the companies from ground-up. & Company and ICT at IDC. world. Chairman of the board of Hard Digital, Together Pharma, Advisory board of Black cube and Sosa. B.A in Law from Tel Aviv University and MBA in Public Policy and Political Science from Haifa University. 5
INVESTMENT COMMITTEE JOSEPH WEISS JACK BALANGA BUKY CARMELI Former president and CEO of IAI ADV. MBA, certified accountant Former head of the National Cyber and Chairman of the Board of ELTA. & financial advisor. Security Authority the M.O.D. Cyber and Technology Defence. Member of the Board of Directors Former Vice President of the Institute at Spacecom, BSEL and UVision. of Certified Public Accountants Ex-officer at one of the IDF’s & Chairman of the Tax Committee. elite technological units. Consultant to local and international aerospace companies. Founding partner of one of the Entrepreneur and founder with largest accountancy firms in Israel. over 30 years of experience Technion Institute of Technology leading large C5I R&D teams. Haifa – Member of the honorable Member of the Board of Auditors of Board of Directors. the Ministry of Justice and member B.Sc., Master in Science, The of the Board of Directors (Central Department of Electronics Committee) of the Institute & Computers engineering, of Certified Public Accountants. Ben-Gurion University, Israel. 6
ABOUT AVNON GROUP Founded by Tomer Avnon, former Isareli Navy Seal, an Diverse Deal flow of companies developing entrepreneur with extensive experience in establishing advanced technologyies, allows us to identify and developing companies from the ground up. early stage oopportunities in accordance with international market trends and the needs Annual revenue turnover stands at hundreds of of our customers. millions of dollars. A vast ecosystem of financing and business Specialising in providing integrative solutions and development organisations, financial institutions, advanced technologies to financial organisations, international experts, research institutes and governmental bodies, and HLS agencies in the public thousands of clients, to provide target companies safety sectors. with holistic support for rapid growth. Avnon Group in Numbers 280 14 7 70 Employees companies Global countries Locations The Avnon Group operates in 4 vectors Venture Integrated Manufacturing Technology Capital Solutions View company profile 7 video
OUR ECO-SYSTEM The Avnon Group has a unique ability to examine investment opportunities and actual technology applications due to an established network of diverse business partners and its many customers in over 70 countries. DEAL FLOW VALUE CREATION GROWTH FUNDING 8
INVESTMENT STRATEGY SMART PUBLIC SMART CYBER CITIES SAFETY ECONOMY SECURITY The fund will invest in companies delivering Investments embodying significant holding rates Companies betterment and acceleration innovative technologies in the fields of Smart that allow us to utilise the fund’s managerial of the the Go-To-Market strategy through Economy and Public Safety, with high growth skills to deliver significant ROI. a unique methodology, based on synergy potential and an experienced team, whose between business development processes path to an Exit is in the foreseeable future. and technological acceleration, alongside professional guidance and comprehensive logistical support. 10
SCALE-UP PROCESS 5 4 3 Growth 2 Business towards 1 • Due Diligence Developmemt an M&A /IPO • Eco-System • Investment (Implementation) Committee • Market analysis • Deal flow & customer (After POC & validation) requirements 11
HIGH GROWTH MARKETS TOTAL MARKET WORTH OF 1.5 TRILLION USD PUBLIC SAFETY CYBER SECURITY SMART CITY Global public safety market Global cyber security market Global smart city market (BUSD,2020-2027) (BUSD,2020-2027) (BUSD,2020-2027) The Homeland security Market offers products, The cyber market is recording exceptional growth, Going forward, increasing popularity of digital services and systems to government and private mainly as a result of an increase in the number of payments, exponential growth of e-commerce and organisations to protect the public from various businesses dependent on technologies and ongoing online entertainment, 5G technology, urban population internal and external threats. digitisation, which are increasing the prevalence of growth and the effects of the covid-19 pandemic are cyber attacks. expected to lead to market growth. $ 812.7B $ 463.9B R 1 2.8 % R 10% CAG C AG $ 335.4B $ 722.2B G R 2 4.7 % $ 349.3B $ 304.2B CA $ 640.3B $ 263.1B $ 277.2B $ 567.6B $ 252.1B $ 198.1B $ 503.2B $ 229.1B $ 149.2B $ 446.1B $ 208.3B $ 112.3B $ 395.4B $ 189.3B $ 84.6B 2027 2027 2027 $ 350.6B 2026 $ 172.2B 2026 $ 63.7B 2026 2025 2025 2025 2024 2024 2024 2023 2023 2023 2022 2022 2022 2021 2021 2021 2020 2020 2020 12
BENEFITS FOR START-UPS FOR INVESTORS set of managerial, human and technological A High exposure to evolving resources In the relevant areas of activity. technologies in it’s early stages. Exposure to the Avnon Group’s global customer base. Investment in companies according to close 43 of the Innovation Authority. ccess to financial resources, exposure to the capital A market , investors and comprehensive & diverse The partnership is an open fund, capital raising options. with no expiration date. Growth acceleration towards an exit. Liquidity - Unobstructed participation units that allow entry / exit at any time. Option to redeem profits immediately in case of value overflow (M&A/IPO). 13
FUND STRUCTURE Fund structure: Research and development partnership Scope of fund raising: Tens of millions of NIS G eneral Partners: Avnon Group, Leader Capital Markets, APEX Issuances, Migdal Group and Meitav Dash G eneral partner investment: NIS 10 million (of which NIS 4 million by the Avnon Group) S lim and efficient expense structure: Management Fee: $ 25,000 monthly. position holders do not receive salaries or management fees from the fund Initiation fee: Up to 100% return - 20% of profit Over 100% return - 30% of profit 14
SUMMERY Senior staff with many years of Agreements signed with Accompanying the companies by the Investing in quality opportunities background and experience in the fields three innovative companies fund's management team in order to while achieving maximum return of management, business, technology, with unique technology improve the proposed value proposition on investment and in a short time IPOs and investment bodies The cheapest management fees in Orderly and professional The Avnon Group will significantly the market, the officers do not attract screening processes for promote the sales of the target salaries from the fund, contributes to the examining the quality of companies among its many coordination of interests between the fund's investments customers around the world investors and the fund's management 15
Thank you! 16
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