Venture Capital Investments Mr. Yigal Erlich President & CEO, The Yozma Group Chairman, Israel Venture Association

Venture Capital Raised 3rd Wave 1st Wave: Establishment of Yozma 2nd Wave Source: PriceWaterhouseCoppers

Average Leading VC Size ($M) VC firms development over the years 1993-5 1996-8 1999-01 Average Leading VC Size ($M) 20 80 180-200 No. of Venture Firms 15 40 60

Source: PriceWaterhouseCoppers

Capital Raised in Public Offerings of Israeli Companies in the US

M&As of Israeli Technology Companies and Foreign Strategic Partners: 1994 - 1997 $1.5B 1998 - 1999 $4.5B 1st Half - 2000 $7.6B

Source: PriceWaterhouceCoopers - MoneyTree

Source: PriceWaterhouseCoppers

Israeli VC Arena today Political Risk Declining Capital Markets Uncompetitive Tax Policy Mature VC market Globalization of VC’s

Uncompetitive Tax Policy Tax on foreign Investors Double tax on Israeli related companies for U.S investors Double tax on some European Investors  Uncompetitive VC Market Increased Carried perception