Offer closed 9:00 pm, 16 May 2022

Background

Snowball Effect, via its partnership with OurCrowd, has been given the opportunity to make this offer available to Kiwi investors. Investors through Snowball Effect will invest via Snowball Nominees and the OurCrowd investment entity.

For regulatory reasons, this offer will only be available to wholesale investors.

You can find out more about how to qualify as a 'wholesale investor' here.

Please be aware that investments in early stage companies or in venture capital funds contain a high level of risk and you should consider this prior to making any investment decisions. Past performance is not indicative of future results.

Media

If you wish to report on this capital raise in any form of media please email [email protected] to discuss. The information contained in this offer is highly confidential and is not to be used without approval from the Snowball Effect team.

Who is OurCrowd?

OurCrowd is the world’s leading technology and venture investment platform with almost USD1.5 billion in committed funds from over 69,000 members.
OurCrowd invests its own capital in all companies and funds available on its platform, and invites members to invest alongside venture and institutional investors at the same terms. OurCrowd has a highly selective deal flow and conducts in-depth due diligence, investing across various industries including artificial intelligence, healthcare, agritech, cyber security, food tech, autonomous driving and drones.

Post-investment, OurCrowd provides mentorship, takes board seats, invests in follow-on rounds, and fosters strategic multinational partnerships. At the same time, OurCrowd’s team builds its network of multinational partners while fostering relationships between its portfolio companies and a global network of multinational scouts, investors and innovators.

Snowball Effect has partnered with OurCrowd to give kiwi investors a simple way to get access and exposure to these global opportunities, and is now offering wholesale investors the opportunity to invest in OurCrowd's Cybersecurity Fund.

Fund: Key Highlights

Allocation into the next 15-20 cyber opportunities on the OurCrowd platform
Israel is one of the hottest cybersecurity markets in the world, accounting for some 40% of global private cybersecurity funding rounds
40 Israeli cyber companies acquired in 2021, 4 IPOs
OurCrowd has realised 7 exits from 30 cybersecurity companies since its first investment in 2013

Overview

OurCrowd’s Cyber Fund (OC Cyber) will give investors access to a portfolio of 15 - 20 Cyber and Cyber related opportunities. OurCrowd has built a Cyber portfolio of over $80M invested across 30 companies with seven realised exits. OurCrowd’s success with cybersecurity companies includes several key exits: Cognigo was acquired by NetApp, CyberX was acquired by Microsoft, Hub Security is now listed on TASE after an M&A transaction; and Kenna Security was acquired by Cisco. OurCrowd is now raising a $30m fund focused on investing in the worlds best cybersecurity startups. Through Snowball Effect, New Zealand investors can gain easy access to exposure within this fast growing sector.

Fund Fee Summary

Management Fee	2% annual management fee for the term of the Fund (+ admin etc) and organisational expenses (1% cap)
Carried Interest	Above 1x return:20%; above 3x return:25%
Investment Guidelines	The Fund will make equity and equity-related investments in companies focused on cybersecurity technologies across different geographies and stages.
Target Investments	15-20 portfolio companies

NB: Full information on fees can be found under the 'Offer' tab.

Investment via Snowball Effect

Investing in this Cybersecurity Fund provides a simple way for wholesale investors to get exposure to global VC back Cyber investment opportunities. All investments into the fund will be held within Snowball Nominees, and will be available to view on Orchestra.

Because the fund is a Limited Partnership, only wholesale investors are able to invest.

Why Invest in a Cybersecurity Fund?

The Global Explosion in the Cybersecurity Industry.

Cybersecurity is one of the fastest growing sectors globally. According to Gartner’s forecast[1], in 2021 worldwide security and risk management spending was expected to exceed $150B, representing a 12.4% growth. This growth can be attributed to the increasing awareness and rising investments in Cybersecurity infrastructure across global organisations operating across verticals. Cybersecurity is a growing concern for businesses of all sizes as cyber criminals use increasingly sophisticated tactics. Hackers are compromising more corporate and personal data than ever before, forcing corporations to increase their investments in their Cybersecurity tools and methods.

According to Identity Theft Resource Center (ITRC) the number of data compromise victims in Q3 2021 (160 million) was higher than Q1 and Q2 2021 combined (121 million). The dramatic rise in victims was primarily due to a series of unsecured cloud databases rather than data breaches. The total number of cyberattack-related data compromises as of Q3 2021 grew 27% compared to FY 2020. Phishing and Ransomware continue to be the primary attack vectors. These, alongside some high-profile cyber-attacks in 2021 have sent an alarming shock to companies, governments, and consumers, globally exemplifying the immediate need for Cybersecurity solutions.

Global Cybersecurity Sector

Worldwide Security and Risk Management spending to exceed $150B in 2021 Expected growth of 12.4% in 2021 vs. 6.4% growth in spending in 2020.

This is driven by:

Increasing awareness and rising investments in cybersecurity infrastructure across global organisations operating across verticals
Networks and attackers have no boundaries
Adoption of IoT security will increase the demand in the cybersecurity market

Cybersecurity in Israel

Israel as a Key Player in the Cybersecurity Landscape.

In 2020 $2.9B were invested in Cybersecurity within Israel, which accounted for 31% of the world’s cyber investments. According to the latest Israel National Cyber Directorate report, 2021 was a record year for Israeli Cybersecurity. Israel Cyber companies raised $8.8B in 131 private funding rounds tripling 2020-funding. To date, private Cyber investments in Israel account for ~40% of the worlds cyber funding rounds. During 2021, 40 Israeli Cyber and Cyber related companies were acquired for a total of over $3.5B, four companies had an IPO and eleven new unicorns emerged during the year.

OurCrowd Cybersecurity Activity

OurCrowd’s cybersecurity investments can be attributed to its in-house leadership. Ron Moritz has led many of OurCrowd’s Cybersecurity investments since 2013 and is a well-regarded cybersecurity industry executive with over 30 years of broad operational, strategy and P&L experience. He served as a member of the distinguished corporate and cybersecurity business unit leadership teams at premier Fortune 500 technology companies Microsoft, Symantec, and CA Technologies, and as CTO of Finjan Software, a first-generation advanced persistent threat start-up, known today as Singtel’s Secure Web Gateway. Most recently, Ron was the CEO of Israeli start-up, BioCatch, an innovator in cognitive biometrics and continuous authentication.

Ron is also a branded computer security industry guru and internationally recognised expert on cyber-crime and cyber-warfare who, at the invitation of the U.S. Department of Justice, served as a delegate to the G-8 High-Tech Crime Conferences on Safety, Security, and Confidence in Cyberspace. He successfully challenged and defeated proposed cybersecurity export control legislation in Israel.

OurCrowd has already invested in over 30 Cyber companies and achieved 7 realised exits with highly branded fortune 500 purchasers such as Cisco, Microsoft and Continental AG. Recent exists include CyberX (a company in which OurCrowd made its initial investment in the A round) that was acquired by Microsoft for an undisclosed amount. OurCrowd also made its first investment in Kenna Security during its Series B round in July of 2016 and the company was acquired by Cisco in 2021, generating a realised gross MOIC of ~7.9x for investors (and a blended of 4.83x across OurCrowd’s overall investments into the company).

As OurCrowd generally invests in opportunities on a deal-by-deal basis, we have looked back at OurCrowd’s past performance in an attempt to create a simulation fund model with investment parameters that are as identical as possible to OC Cyber including, size of the fund, investment period and number of investments. These results have suggested that to the extent OurCrowd had launched a $30M Cyber Fund in 2015, such a portfolio would have been held at a 21.1% net IRR (24.4% Gross) and 1.91x TVPI (2.14x gross) as of Q3 2021.

OurCrowd has invested in over 30 Cybersecurity companies, realising seven exits together with Fortune 500 companies such as Cisco, Microsoft and Continental AG.

This includes 6 M&A transactions – 1 Exit in process - 1 Write Off

¹OurCrowd has not realised HUB Security's merger. It is trading, under lock up.
²OurCrowd has not realised Opaq Networks' acquisition. It is unrealised in escrow.

Since Q2 2021, OurCrowd has made three additional cybersecurity investments.

OurCrowd Cybersecurity Simulation Performance¹

The metrics reflected in OurCrowd Cybersecurity portfolio performance simulation set forth above are intended to simulate a $30M OC Cybersecurity fund with an investment period commencing in April 2015 and ending in September 2021 reflecting a 5 year initial investment period (“Investment Period”).

A Sample of OurCrowd's Cybersecurity Companies

Select Top Performing Cyber Companies in OurCrowd's Portfolio

OurCrowd is managed by a team of seasoned professionals

Jon Medved Founder & CEO

Jonathan Medved is a serial entrepreneur and according to the Washington Post (2007) “one of Israel’s leading high-tech venture capitalists.” In the 2008 NY Times Supplement “Israel at 60" Medved was named one of the top 10 most influential Americans who have impacted Israel. Medved is the founder and CEO of OurCrowd, the world’s largest equity crowdfunding platform for accredited investors which has raised more than $1B for over 170 companies since its launch in February 2013. Bloomberg Businessweek said that OurCrowd “has blown up the exclusivity around tech fundraising” and The Jerusalem Post added that “It has taken OurCrowd only a matter of months to become one of Israel’s most active funds.” TheStreet.com said that OurCrowd is “Crowdfunding for Real Investors.” Prior to OurCrowd, Medved was the co-founder and CEO of Vringo (Nasdaq:VRNG) and the co-founder and General Partner of Israel Seed Partners, with $262M under management.

Andy Kaye President & CIO

Prior to joining OurCrowd in 2017 as President and Chief Institutional Officer, Andy spent over 21 years in the finance industry, working with world leading hi-tech and growth companies from all over the globe. His experience includes 7 years at Robertson Stephens where he was CEO and head of their Israel practice and head of two European industry groups. Four years as regional head for CIBCWM's investment banking operation and five years in China as Head of Asia for William Blair, followed by two years in London as Managing Director of EMEA Tech. Throughout his career Andy has excelled in establishing and expanding operations in new and existing markets, developing them to become significant players and industry leaders.

Alec Ellison Chairman, OurCrowd US

Alec Ellison serves as Chairman of OurCrowd's US business, a role he took on after serving nearly 3 years on OurCrowd’s Advisory Board. He joined OurCrowd after a nearly 30-year career in investment banking focused on the technology sector. Alec was formerly a Vice Chairman of Jefferies LLC, the longtime head of the firm's Technology Investment Banking Group, and a member of the firm's Executive Committee. He joined Jefferies as part of the firm's 2003 acquisition of Broadview International, where he was President. He began his investment banking career at Morgan Stanley. In addition to his 35 year career in technology finance, Alec has been deeply involved in the Israeli technology scene since 1996. He is a South Carolina native, resides in Connecticut, and holds a BA from Yale (summa cum laude) and an MBA with High Distinction from the Harvard Business School.

Alan Weisleder Partner, Executive VP, IR

Alan serves as Partner and Executive Vice President of Investor Relations. Prior to joining OurCrowd, Alan spent 18 years in executive management positions at start-up companies in Israel and California. Alan is passionate about starting and building technology companies and throughout his career has excelled in building world-wide sales operations and distribution channels covering The Americas, EMEA and APAC. Alan's previous leadership roles include EVP Global Sales at GigaSpaces, SVP Business Development at StoreDot, CEO at Keebali Media, and CEO of NewChannel - sold to LivePerson (NASDAQ:LPSN). Alan earned his B.Sc in Information Systems Engineering from The Technion and graduated from Stanford/AEA Executive Institute.

Dan Bennet General Partner, Managing Director, OurCrowd Australia

Dan has over 15 years of global experience in private banking, investment and law. Dan is the former Head of Business Affairs at Future Capital Partners in London which has made venture investments of over $13 billion. Prior to this, Dan was the head of the Australian legal team for Australia's largest renewable energy business, Infigen Energy (formerly a Babcock & Brown Wind Partners), a listed vehicle on the Australian Stock Exchange. Dan's professional career has focused on investment and deal execution, specifically M&A activity (structuring, negotiating and de-risking), financing, green field project development and asset management. Dan also worked with Minter Ellison lawyers in their Finance Group. Dan holds a Bachelor of Law and Bachelor of Commerce from the University of New South Wales.

Denes Ban General Partner, Managing Director, OurCrowd Asia

Denes Ban serves as the Managing Partner at OurCrowd, the leading Global Equity Crowdfunding platform and has been responsible for much of OurCrowd’s rapid growth in Asia. As a successful entrepreneur and angel investor, Denes has invested in over 30 companies and founded a number of start-ups in the past decade, including funding and selling an HR company and co-founding PocketGuide, a TechCrunch Europe winner and the world’s leading travel app for 150 cities, with millions of users. Denes has dedicated more than ten years to fostering growth, training and shaping corporate strategy for companies around the globe, improving profitability of over 100 companies and training hundreds of CEOs and Founders around the world. He is a frequent speaker at leading international conferences and has been lecturing at universities such as Harvard, Kellogg, Insead and CKGSB. A respected community leader, Denes is closely involved with a number of philanthropy organizations and on Saturday nights you can find him playing blues and jazz with his band.

Ilana Odess Partner & Managing Director, OurCrowd North America

Ms. Odess has spent her entire career within the healthcare & science industries and has held senior executive roles for multinational companies such as Johnson & Johnson. A serial entrepreneur, she has founded a number of start-ups including Advanced Stent Technologies, CID and Woven Orthopedic Technologies. As an operator, Ms. Odess is an expert in leading companies from concept to clinical application. She has created multiple businesses that have been acquired by multi-billion-dollar medical device companies, negotiated over 30 worldwide partnerships and commenced direct corporate operations for Johnson & Johnson in Israel. Ms. Odess has been recognized for her ability to create successful innovative solutions and has received the Frost & Sullivan Award for Innovation and the state of Connecticut’s “2014 Woman of the Year” award for Entrepreneurial Innovation and Leadership and was honored by Connecticut Women’s Hall of Fame as 2015 Global Impact Honoree. Ms. Odess was also the recipient of the “CEO USA Award” in 2018 from CEO Today Magazine.

Ron Moritz Venture Partner, Cybersecurity and Enterprise Infrastructure

Ron Moritz is a well-regarded cybersecurity industry executive with over 30 years of broad operational, strategy and P&L experience. He served as a member of the distinguished corporate or cybersecurity business unit leadership teams at premier Fortune 500 technology companies Microsoft, Symantec, and CA Technologies, and as CTO of Finjan Software, a first-generation advanced persistent threat start-up. Most recently, Ron was the CEO of Israeli start-up, BioCatch, an innovator in cognitive biometrics and continuous authentication.

Robbie Citron CFO

Robbie Citron has over 30 years of experience in financial management, including two decades in the VC industry and with startups through his current role as a founding Partner and CFO of OurCrowd, a former similar role at Jerusalem Global Ventures and as consulting CFO at a number of independent Israeli biotech and medical startups, including Izun Pharmaceuticals and Chiasma. Earlier in his career, Robbie was Financial Controller and Company Secretary of the Israel branch of Hanson PLC and worked as a public accountant with PricewaterhouseCoopers in Israel and BDO Stoy Hayward in London. He is a Certified Public Accountant in Israel and a Fellow of the Institute of Chartered Accounts in England & Wales. Robbie holds an honors degree in Accounting and Finance from the London School of Economics and Political Science and sets aside part of his spare time to work with a number of Jerusalem based charitable institutions.

Laly David Partner, Business Development

Laly leads business development and strategic relationships for OurCrowd and its portfolio companies. Before joining OurCrowd, Laly held senior positions in business development and strategy across multiple industries in private and public companies. She also experienced the rollercoaster of being the CEO of a startup making eco-friendly cardboard products. Laly began her career as a lawyer and enjoyed six years in the upper west side of New York working at a leading firm on mergers & acquisitions and securities offerings. Laly served as a non-commissioned Education Officer in the IDF Officers School. She holds both a law degree (1997) and a Philosophy degree (1997, magna cum laudae) from Tel-Aviv University and an MBA from the Nash Honors Program at Baruch College (2000). Laly is a long distance runner and enjoys hiking with her family.

Josh Wolff Senior VP, Global Operations

Josh Wolff joins OurCrowd with over 20 years of executive management experience focused on operations, technology, and infrastructure. Josh earned his BSc in Industrial Engineering from Columbia University in 1994 where he was recognised by the Alpha Pi Mu National Honors Society. Josh's prior leadership roles include two acquired startups, multiple public companies, and private firms. Josh served as Senior Vice President at NY-based Vringo Mobile (NASDAQ: VRNG) from 2007 to 2013 when it was acquired by Infomedia Group in the UK, where he led as SVP and Chief Commercial Offcier until joining OurCrowd in 2016. Previously Josh served as Director of Technology at Mobilee in Boston, MA, when it was acquired by NMS Communications in 2001, where he spearheaded the integration of new wireless infrastructure products. Born and raised in Boston, Josh has also devoted time in the non-profit world, contributing business management expertise to advance significant educational, social, and charitable causes.

Jeff Schneiderman CTO, Head of Product and Technology

Jeff joins OurCrowd with more than 30 years of passion and experience building great products, and more than 25 years of executive R&D management experience in both startups and public companies. Since 2012, Jeff was Co-Founder and CTO of WhoDoYou.com. Prior to that, Jeff was CTO and founding member of Answers.com from 1999 to 2011, helping it grow into a top 20 US web property while managing product and development teams of more than 60 people. Answers.com went public in 2005 (Nasdaq: ANSW) and was acquired in 2011. Before Answers.com, Jeff was VP Product Development at Accent Software (Nasdaq: ACNTF). Additionally, Jeff has held various development positions at The Whitewater group and AT&T Bell Labs before moving to Israel in 1991. Jeff has a B.S. in Computer Science from the University of Illinois at Urbana/Champaign and a M.S. in Computer Science from Illinois Institute of Technology.

OurCrowd Cybersecurity Fund