Gemini partner Danny Cohen's presentation at TechAviv CA. March 31st, 2009

1. Tech Aviv, March 31st, 2009
© Gemini Israel Funds 2009, Private & Confidential
Confidential

2. DEMO!!
2 Confidential

3. The entrepreneur tries to get an answer from the VC.
3 Confidential

4. The Partners Meeting
4 Confidential

5. The VC Brush-off
5 Confidential

6. DATA
6 Confidential

7. US Venture Capital Data
Q3 2008 Q4 2008 Diff
# of Companies Funded 283 236 -17%
Average Investment per Company $5.4M $4.6M -15%
Total VC Funding $8M $3.5M -56%
Internet Deals $1,100M $787M -28%
Clean technology Deals $1,100M $909M -17%
• Any news?
• Angels decreased $ invested (-26%), but not the
overall # of deals (-3%)
7 Confidential

8. Israel Venture Capital Data
Q3 2008 Q4 2008 Diff
# of Companies Funded 78 81 4%
Average Investment per Company $5M $3.5M -30%
• VC Fund raising in 2008: $1.1bn, projected to be
$300M in 2009
• Overall, 2008 was excellent, with Q4 much stronger in
Israel than in the US
• But the news from the west coast travels fast…
8 Confidential

9. The LP Story (1)
9 Confidential

10. The LP Story (2)
• Endowments – No liquidity
• Fund of funds – Will they survive?
• The ongoing fears
• Defaults
• Capital Calls
• In an odd way, US looks better than Europe
• Asia?
10 Confidential

11. The VC Story (1)
11 Confidential

12. The VC Story (2002 vs. 2009)
2002 2009
Term Sheets 3x Liquidation 1x Liquidation
Valuation 50% down 50% down
Angel Investing Gone Not Yet
Sectors Enterprise SW Cleantech
Deal Flow Weak Strong
Labor Market Lots of talent Lots of marketing, Eng.?
Bootstrapping Harder Hard
Investment Period Great ?
Down Turn Shut downs Cost Cutting. 2010?
Fund Raising length 6 Months ?
12 Confidential

13. Summary
• Good time to start a company?
13 Confidential

14. The Real Summary
• 2 Years, 10 Months
• 1 Board -> 7 Boards, 1 Company shutdown
• 3 Girls -> 4 Girls
• 10 Pounds
• 70,000 Miles
• Bruce Springsteen, Eddie Vedder, Switchfoot,
, , Foo Fighters
14 Confidential