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Copyright: IVC Research Center Ltd. 2015
Research
IVC Quarterly Survey
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IVC Industry Analytics
Ongoing industry research
(Most Active Funds,
Israeli VC Fund raising)
Online & Customized Reports
The FinTech Cluster
Rate of adoption by traditional institutions
The Function
The Technologies
Banking Tools and IT
Enterprise IT, Risk Management tools, cyber
security, trading, e-banking, mobile banking
Insurance Tools and IT
Enterprise IT, Risk Management tools, cyber
security, actuary, indemnification and
compensation management and tracking,
Online Payment and
transactions
Tool supporting credit, money transfer and
payments in both PoS and online/mobile
capacity, Bitcoin and alternative currency,
digital wallets, e-commerce platforms, etc.
Financial Trading
Algotrading, FX and online trading platforms,
crowdfunding, P2P loans
Copyright: IVC Research Center Ltd. 2015
Emerging Cluster
Israeli FinTech Startups Established 2005-Apr 2015
• Financial
Technologies are
a prominent
cluster in Israel
• Online platform
technologies are
a niche cluster
within FinTech,
growing in
prominence
• Currently, 95
companies are
active: 22% of
active FinTech
companies
80
75
70
60
63
50
52
55
40
34
30
28
24
20
25
17
10
0
13
5
6
7
10
11
9
9
12
14
18
12
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
# of Fintech Companies Established
3
2015
# of Online Trading Platform Companies Established
Copyright: IVC Research Center Ltd. 2015
Not just Internet
4%
38%
58%
Internet
IT & Enterprise Software
Communications
Copyright: IVC Research Center Ltd. 2015
• As expected, most
companies in the cluster
are Internet companies
(the would be the
“online” part)
• But there are many
software companies in
the cluster, which cover
the “platform” end
• Communication
companies in the cluster,
are in the rapidly
growing mobile apps
group
Generating Revenues
Online Trading Platform Companies by Stage
• The number of active
companies generating
revenues is substantial (44%),
considering the fact most
companies active have been
established in the past 10
years
• In the entire set of active
high-tech companies
established since 2005, only
31% are generating revenues;
less than 3% generate more
than $10m annually
16%
19%
28%
37%
Seed
R&D
Initial Revenues
Copyright: IVC Research Center Ltd. 2015
Revenue Growth
But finds it hard to raise capital
#
Capital Raising by Israeli Online Trading Platforms 2010-Q1/2015
$m
45
40
35
From 30% of capital
invested in FinTech in
2010, to less than 5%
in Q1/2015
1.25% max of capital
raised by Israeli hightech companies
(mostly below 1%)
10
9
9
8
7
30
6
Less than 12% of
capital raised by
FinTech companies
25
20
5
4
3
15
3
2
10
2
1
5
1
1
1
15
8
20
4
43
3
0
0
2010
No capital raised
by the sector in
2009
2011
2012
2013
Total $M Raised by Online Trading Platform Companies
Copyright: IVC Research Center Ltd. 2015
2014
# of Rounds
Q1/2015
Israeli Companies are among Industry Leaders
Forex &
Derivatives
Algotech
Binary
P2P Loans
Crowdfunding
Copyright: IVC Research Center Ltd. 2015
Lets recap:
• There IS a technology cluster
• It creates interesting technologies and
substantial revenues
• But investors overlook it, channeling funds to
more “traditional” technologies in FinTech
• Or maybe, it just generates enough of its own
capital…
Copyright: IVC Research Center Ltd. 2015
Our speakers today
• Andrew Saks-McLeod, Managing Editor
LeapRate: Online trading industry– Review
and trends
• Dr. Dotan Baruch, Partner, Barnea & Co:
Regulatory regimes as shapers of the industry
• Meidad Sharon, VP Sales, SafeCharge:
Optimizing the Payments Funnel
Copyright: IVC Research Center Ltd. 2015
Our panels
• Regulatory Aspects panel moderated by Dr.
Dotan Baruch, Barnea & Co.
– Joined by panel exerts from Addleshaw Goddard LLP,
Zerafa Advocates
• Company Case Studies panel moderated by
Shahar Familia, Canaccord Genuity Inc.
– Joined by panel exerts from SpotOption, Leverate,
eToro, TradAir
• Technological innovations leading Israeli startup
panel moderated by Micky Barnea, Barnea & Co.
– Joined by panel experts from 8alert, AlgoWays,
CPattern, Nextrade, TradeO
Copyright: IVC Research Center Ltd. 2015
Thank You
Koby Simana
CEO, IVC Research Center
[email protected]
Copyright: IVC Research Center Ltd. 2015