1.
The Changing Relationship between
Investors and Investments
March 2015

2.
The changing investment ecosystem:
The evolution of the advisor-investor relationship and the trends to watch
2

3.
How we used to invest:
Change is not new in our industry
Brokerage, Commission-Trading, &
Asymmetry of Information
Enter Schwab The playing field is
levelled in 2000:
Regulation Fair
Disclosure (Reg FD)
Does Regulation Fair
Disclosure affect
analysts’ forecast
performance?
3

4.
4
Booz & Co Global Wealth Management Outlook
2014/15

5.
Global HNWI wealth is growing, as is their demand for
digital in wealth relationship
Source: Capgemini, RBC Wealth Management and Scorpio Partnership Global HNW Insights Survey 2014.5

6.
6
Big Banks are trying to react
Citi to
Launch
Banking App
for Apple
Watch
Business Wire
March 10, 2015
Report: Digital and Mobile Solutions for Financial
Advisors 2015
Fending off the robos: New technologies
reinventing the client/advisor relationship
Report: Mobile Apps for Wealth
Management 2014
Wealth Managers Need Better
Apps to Tap into Mobile High-
Net-Worth Generation

7.
Financials services industry is ripe for disruption
According to the yearly
Edelman Trust
Barometer study…
Finance is the
least trusted of
all industries
7

8.
Regulatory Developments: New rules
Create Opportunities to Meet Changing Investor Demand
Expanding the audience with ”crowd building,” an evolving are of the law
Pre Jobs Act 2012
• No general solicitation or general advertising of unregistered securities allowed
• Exemption—certain private offerings only to accredited investors
• Self-accreditation was sufficient
• Jobs Act 2012—Title 2
• Congress’ attempt to stimulate jobs in the US economy by
broadening investment in private companies
• Mandate for the SEC to issue operative regulations
• First set of rules including 506(c) Exemption Sept 2013
• Jobs Act 2012—Title 3: Crowdfunding
• Creates new registration exemption to take advantage of
Internet’s capacity for mass communication & social interaction
• The new exemption will not become effective until the new SEC
rules have been adopted
• Jobs Act 2015 Title 4
• March 25, 2015: SEC adopted final rules to implement the
expansion of Regulation A (Reg A+), which includes non-
accredited investor provisions
8

9.
Regulatory Developments: New rules
Create Opportunities to Meet Changing Investor Demand
Rule 506(c) provides
General solicitation and general advertising allowed
• All US residents now able to see &
attend meetings with actively
funding companies (whether
accredited or not)
• Web site to contain limited
information on funding companies
for US users only
• Only accredited investors can
actually purchase
• Definition of accredited investor
remains the same
Self Accreditation no longer enough—need to
implement verification procedure
• New Rule requires each US investor
to provide certification letter
• Issued by registered broker-
dealer, RIA, licensed attorney or
CPA
• Needs to be renewed
periodically
• Confirm it is still accurate at the
time of each investment
Relates to US residents only
9
Bad
Actor
Bad actor Provision
• Issuers can only use Rule 506
offerings if no “bad actors”
associated with them
• SEC issued clear guidelines: get
bad guys off the street  more
investor protections

10.
10
HNWI want more than Transaction & Information
via digital media with their Wealth Managers
Source: Capgemini, RBC Wealth Mangement and Scorpio Partnership Global HNW Insights Survey 2014.
The Most Important Interactions on Social Media:
• Trending investment news shared by advisor
• Educational articles and research advisor has
shared
• Instant access to research, whitepapers and
pertinent videos
52%
57% 56%
46%
40% 43%
51% 53% 52%
25%
19% 20%
0%
20%
40%
60%
In-Person
/Phone
Internet E-mail Mobile Social
Media
Video
Inform
59% 58% 58%
46%
36% 41%
58%
49% 56%
26%
20% 24%
0%
20%
40%
60%
80%
In-Person
/Phone
Internet E-mail Mobile Social
Media
Video
Engage
54%
65%
54%
46%
34% 35%
49%
61%
45%
22%
12% 14%
0%
20%
40%
60%
80%
In-Person
/Phone
Internet E-mail Mobile Social
Media
Video
Transact
Under 40
40+

11.
FinTech is exploding: 248 companies with $3.4B
11

12.
For the people, by the people:
Moving from passive investing to participatory investing via crowdfunding
12

13.
Crowdfunding: Competitive Landscape
There has been a proliferation of platforms
13
Source: A Trillion Dollar Market By the People, For the People How Marketplace Lending Will Remake Banking As We Know It BY CHARLES MOLDOW GENERAL PARTNER, FOUNDATION CAPITA

14.
14
While passive investing in ETFs is growing,
active investing via crowdfunding is exploding
Source: H. Terry, D. Schwartz, T. Sun “The Future of Finance Part 3: The Socialization of
Finance,” Goldman Sachs. March 13, 2015.i
$1.5
$2.7
$5.1
$10.0
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
2011 2012 2013 2014
Crowdfunding has exploded to $10bn in
2014, nearly doubling every year
Aggregate Amount of Funding
Through Crowdfunding ($bn)
The World Bank October estimates global
crowdfunding to grow to $95B by 2025
ETFs have a 10 year CAGR of 27.1%
0
1000
2000
3000
4000
5000
6000
0
500
1000
1500
2000
2500
3000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Sep-14
# ETFs/ ETPs
Assets
(US$bn)
Global ETF and ETP Growth
ETF/ETP Assets # ETFs/ETPs

15.
Investors are finding new access points to asset classes
In 2014,
Lending Club
surpassed
$4 billion in total
peer to peer
loan underwritings
(4x 2012’s numbers)
15

16.
16
Fund outflows increase as investors seek alpha
elsewhere
• Mutual fund underperformance in
contrast to lengthy bull market has been
a significant driver of fund outflows
• Investors continue to miss out on returns
by waiting for highly visible private
companies to go public
• To meet and exceed investors’
expectations, RIAs need to offer
investment opportunities that reflect the
“New Alpha”
How Many Mutual Funds Routinely Rout
the Market? Zero
http://www.nytimes.com/2015/03/15/your-money/how-many-mutual-funds-routinely-rout-the-market-zero.html

17.
17
Selection & due diligence matters even more
in illiquid products
Source: Morningstar, Lipper Tass, Preqin.
Note: Dispersion of fund performance, average calendar year 2002-2011. Past performance is not indicative of future results. Should the study have been conducted
over a different time period, the results may have been different. There can be no assurance that an allocation to illiquid investments would yield higher real returns.
Top Decile
2nd Quartile
MEDIAN
3rd Quartile
Bottom Decile
50
40
30
20
10
0
-10
-20
-30
Long-Only
Fixed Income
Long-Only
Equities
Hedge
Funds
Private
Equity
ReturnDifferentialVersusMedian(%)
Manager Dispersion Increases as
Illiquidity Grows

18.
Asset Class Drivers
• Capital Markets Environment
• Pace of Innovation
• Venture capital flows
Manager Specific Drivers
• Ability to identify emerging
innovations
• Access to attractive deals
• Ability to create value through
active involvement in portfolio
company
18
Breaking Down Venture Capital Risk and Return

19.
Wisdom of the crowd:
How individual investors as a collective are driving the future of investment
19

20.
20
Of the $4T opportunity created by the socialization of finance, Crowdfunding represents
$1.2T immediately addressable opportunity with $57bn opportunity in the VC/Angel space
Crowdfunding:
An increasingly large opportunity for investors
Source: H. Terry, D. Schwartz, T. Sun “The Future of Finance Part 3: The Socialization of Finance,” Goldman Sachs. March 13, 2015.i
$666
$140 $72 $68
$33 $24
$166
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
Bankcard
Loans
Home Equity
Loans
Consumer
Finance Loans
Retail Loans Venture
Capital
Angel
Investors
Other Loans
Addressable Opportunity for Crowdfunding:
$1.2T Trillion

21.
Where is Wall Street?
Investors are crowdsourcing more accurate financial estimates
21

22.
• Crowdfunding is growing
rapidly
• Crowdfunding is truly global
Investors are responding by participating in
democratic investment platforms

23.
23
As crowdfunding grows, platforms become differentiated by levels of due diligence, investment
management and investor constituency
Equity Crowd Funding:
OurCrowd, AngelList, CircleUp lead the pack
Investment
Management
Diligence
Unaccredited
Investors
Indicated
Upstream Move
Accredited
Investors

24.
Israel Case Study: “Move over, Silicon Valley…”
As seen in the Economist last year – ranking the world’s 20 top startup ecosystems,
Israel is #2
24

25.
25
Israel is one of the world’s top marketplaces for
innovation
In the last
decade,
these
companies
all bought
at least one
Israeli
start-up.

26.
The OurCrowd Model
26

27.
27
Creating a new class of investment:
Crowdsourced Equity Capital Investing
OurCrowd’s platform combines four models of Crowdsourcing
Equity Crowd Funding at the
core of OurCrowd’s model
Creating content &
communities of investors,
experts & alumni
Utilize voting/polling of experts
as part of due diligence
Harnessing the wisdom of
crowds and expert groups
Funding
Voting
Wisdom
Creating

28.
28
Why OurCrowd
Clients want unique opportunities, diversified across sector and stage,
 delivered through a process they can trust,
 which produces performance at a fair cost,
 all wrapped in a world class networking/client experience
Entrepreneurs want efficient and fair access to capital,
 a process they can trust, enabled through a system
 that raises their profile and leverages their marketing efforts,
 while supporting their growth and development
Democratizing Wealth Creation and Access to Capital

29.
Foundation/Brand
• Founded in “Start-up Nation,” Israel, home to one of the world’s most prolific start-up communities
• Management Team brings broad experience and global perspective
Strong Network to Generate Deal Flow
• Access to a global network of investors, entrepreneurs and advisors brings access to diversity of opportunities
• Synergistic co-investing with an extensive network of Top-tier funds (VCs) & institutional investors
Partnership Model
• Business Model partners OurCrowd with investors & entrepreneurs
• Multi channel investor platform
Crowd Engagement
• Opportunity to build customized communities of investor groups
• Innovative use of the crowd and power of expert groups (refinement under development)
29
Key Differentiators

30.
30
We do not invest alone—and increasingly our partners want to access crowd capital & insights
OurCrowd: Partnering With Leading Institutions

31.
31
We’ve invested in 62 companies with ~30 follow on rounds
OurCrowd’s portfolio