Creating medtec Companies In The New Environment

Creating medtec Companies In The New Environment – Challenges and Opportunities The Israeli experience Yuval Binur, Ph. D. Accelerated Technologies Partners

Innovations : The Key for Growth Successful Innovations require: • Entrepreneurial spirit and culture: allow risk taking • Industrial and academic infrastructure: provide trained management and research support • Understanding market and corporate unmet needs: ensure the right product solutions • Active and growing local capital market: provide the FUEL that move the innovation vehicle to success

What makes Israel unique ?

Entrepreneurial Spirit

Government Support CSO office: • Seed financing • Incubators • Late stage funding • Marketing • Large industry grants • Tax deferment BIRDF:

Strong physicians’ involvement at early stage • Access to clinical facilities • Team playing with engineers

Hi Focus on seed and early stage • No ambitions to build another Medtronic • Focus on innovations and not on marketing

High Corporate Interest • Entrepreneurs learn to address not only clinical unmet needs but also corporate strategic needs to accelerate exits

Recognizing The Role of Large Corporations: • With disappearing IPO markets, • • corporations are the only exit to full liquidity Organic R&D is largely dead despite huge mergers in the pharma industry However, to be attractive for acquisition, strong IP, proof of concept, advanced clinical data and in many cases revenues are required.

Recognizing global changes We in the US have been slow to recognize the emerging new world order: Our maps still place the

Optimists, Pessimists In business, the Israelis are realists…

Fuel… With government support, Israel built an effective VC industry The Israelis recognized that Medical technologies is an area of relative advantage

Recognizing the failure of the classical VC industry: • Focus on alternative and creative financing They think out of the box

“My portfolio of venture funds is mostly under water, depends only how deep. They all live on oxygen that is diminishing in their tanks…” A large institutional manager Lacking IPO exits, most of the VC funds cannot show returns that compensate for the risk taken by the institutional investors

Accepting and preempting global changes: • The depressed world economy • Shifting global markets • Health care reform (US) and similar • • • global H/C system problems The changes in H/C unmet needs The state of large corporations The failure of the VC model

In Summary: The Israelis are: Realistic Flexible and improvising focused resilient Speaking good US English Thinking out of the box

All these, plus good weather, great healthy food and improved, quality local wines make Israel an attractive place to invest in medical technologies…

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