1. Building your business plan Financing options

2. The main question Why ? Varies reasons: Varies reasons: Make money ? Make money ? Self fulfillment, interest ? Self fulfillment, interest ? Vision, need to change the world ? Vision, need to change the world ? Can not fit to other environments ? Can not fit to other environments ?

3. How to Finance a start-up: My own perspective Entrepreneur since 1994 Entrepreneur since 1994 (playing with models…) (playing with models…) Phonet (sold in 1998) Phonet (sold in 1998) Septier (president and CEO) Septier (president and CEO) Cellebrite Cellebrite Libercell Libercell

4. Financing strategies The business plan is highly influenced by your financing strategies: The business plan is highly influenced by your financing strategies: Financing path Financing path How much and when How much and when Who will be your partners Who will be your partners VC’s, angels, projects etc.. VC’s, angels, projects etc..

5. Various alternatives to fund a start-up VC’s VC’s Industrial partners Industrial partners Angels (the three F’s) Angels (the three F’s) Projects Projects Self financing Self financing

6. Professional Investors Major factor – portfolio strategy The founders have one “baby”, professional investors have a portfolio… The founders have one “baby”, professional investors have a portfolio… Time perspective (7Y…) Time perspective (7Y…) Thus, decision making is very different: Thus, decision making is very different: Risk taking Risk taking Exit strategy Exit strategy Commitment to survival Commitment to survival

7. VC’s are only one option in the tool box… Some of the most successful companies in the world and in Israel are not VC backed… Some of the most successful companies in the world and in Israel are not VC backed… Microsoft… Microsoft… Amdocs Amdocs Teva Teva …

8. VC’s Portfolio driven Portfolio driven Time perspective Time perspective Deep pockets Deep pockets Involved Involved Example – Chromatics… Cisco.. Example – Chromatics… Cisco.. A partner rather then an investor Fits to very difficult technological tasks with very high risk and potential… my perspective – Phonet Business plan impacts – presentation is everything. extensive excellware …

9. Industrial partners Have their own agenda Have their own agenda Can provide support Can provide support Financing Financing Real life experience Real life experience Market assistance Market assistance Fits to very experienced entrepreneurs with “real” product My perspective – Septier Business plan impact – real life, no bullshit…

10. Angels “stupid money” – the three F’s “stupid money” – the three F’s Limited involvement Limited involvement Limited support Limited support Most of them are history…

11. Projects In the main area of activity… Diversion Diversion Longer time to market Longer time to market Hands on Hands on Control Control Fits to very experienced entrepreneurs with a project type product My perspective – Libercell Business plan impact – a few excel shits, extensive cash flow control

12. Self financing Low budget products Low budget products High market need High market need Specific advantage to the entrepreneurs Specific advantage to the entrepreneurs Longer time to market Longer time to market Control Control My perspective – Cellebrite Business plan impact – cash flow is everything…

13. Life cycle combinations Start with own limited resources… Start with own limited resources… Get relevant project to add resources Get relevant project to add resources VC or Strategic partner VC or Strategic partner IPO… IPO… Self financingProjectVC or SPExit

14. Summary My view Various ways to make it happen Various ways to make it happen Depended on: Depended on: Product Product Technology Technology Market Market Founder characteristics Founder characteristics Find your own way…