Investment in Israel The Start-Up Nation

1. Investment in Israel The Start-Up Nation

3. Map Of Israel

4. Israel- Introduction Established- 1948 Population- 8.5M Language- Hebrew, Arabic Capital city- Jerusalem Trade Capital City Tel-Aviv Prime Minister- Benjamin Netanyahu

5. Israel- Introduction GDP Per Capita- 40,286 USD NIS to USD- 3.70 (Updated Yesterday) • Unemployment Rate- 3.6% • Flight ticket price- $500

6. topics • Israel Reputation • Reasons for Prosperity • Israeli’s Start-up Exit Deal • Ways to Invest in Israel • Jingsh & Israel Investment

7. Israeli reputation Since 1948

8. History Of Success 2018 • Orbotech(KLA-Tencor)- 3.4$ Billion • Manufacturing solution • NDS(European Investment Fund)- 1.1$ Billion • Digital rights management • SodaStream, (Pepsico)- 3.2$ Billion • Mazor Robotics (Medtronic)- 1.6$ Billion • Sygnia (Temasek, Singapore)- 250$ Millions • Cyber Technology and cervices company • X58 of the initial investment

9. History Of Success 2017- 34$Billion • NeuroDerm (Mitsubishi)- 1.1$ Billion • drug maker NeuroDerm • 11 purchase transactions amount exceeding$250 million • Over than 30 Transactions amount exceeding$100 million • In The last 5 years- 7 Exit Deals of $billion

10. Exits Amount

11. Reasons for Success

12. The reasons for the Prosperity • Supporting Regulation • Human Resources • Necessity- Independed agriculture, energy

13. Supporting Regulation Free of limitation and restrictions, Free of disturbing Regulations • NO restriction on foreign investment • NO limitations of the ownership percentage • NO governmental approval is required for investment/M&A (with exceptions) • NO foreign exchange control

14. Supporting Regulation Judicial • Independent • Transparent • Predictable • High Quality and fairness

15. Supporting Regulation Governmental Project- Temporaries and permanent • The “Yozma” project- the State offered $8 million to an Israeli entity that would connect with an international investor, and raise $12 million together • Chief Scientists-Law for the Encouragement of Research, Development and Technological Innovation in Industry, 1984- contain financial support for initiators • Funding for Israeli Investors • Significant reductions in taxation for foreign investors in industry- 5% Income Taxation

16. Supporting Regulation Bilateral treaties between China and Israel • Treaty for promotion and Reciprocal Protection of investment • Treaty for the Avoidance of Double taxation • Adequacy With GDPR (Europe) the one and the only in the middle east)

17. Supporting Regulation Amendment of the Encouragement of Foreign Investment Law – 2018 "The purpose of this bill is to tax companies with intellectual property in order to concentrate their intellectual property (IP) in the State of Israel, as a result of attractive tax payments in the State of Israel”. In other word. Attracting foreign investments to Israel and not smuggling existing investments in order to increase productivity and employ quality manpower in Israel

18. The human resource International Companies in Israel

19. The human resource Companies which open R&D centers in Israel

20. The human resource Companies which open R&D centers in Israel

21. The human resource

22. The human resource Estimated Reasons • Israeli forces and The Israeli Intelligence institutions provides extend knowledge in young age • Being paid by option- Believing in themselves • Geographical concentration • Some researches talk about genes- I don’t believe them

23. Israeli’s Start-up Exit Deal

24. Characteristic Of Israeli Exit • Property • Human Resources • IP • Supported By the Israeli Government • Salary being paid by options and shares • Global Activities

25. Life cycle of High-Tech Exit Deal Fund Raising • Pre-Seed Round (F&F)- Idea • Seed Round (Angles\VC’s)- Prototype • Third Round (Expansion- VC’s)- commercialize • Late Round (Exit- Major corporation)- World Wide

26. Life cycle of High-Tech Exit Deal Fund Raising • Pre-Seed Round • Seed Round • Third Round? • Late Round (Exit?)

27. IP & Labor laws- Study Case

28. IP & Labor laws Assignment of Invention • Article 131(a( Written Notice- employee must be noticed to the employer of any invent he found, patent he reach due to or while his service to the employee • Article 132(a) Innovation of an employee which made due to his service or while the time he was employee is the property of the employer, unless they have other agreement • Article 134 If there isn’t any other agreement, disputes will be solved by the authority of the committee for such affairs.

29. Mobil-Eye & Intel & Hebrew University 2014- raised 890$ million on NY Stock Exchange 2002- The Hebrew University demanded 40% of the IP 2004- Amnon Sha’aShua Signed up for an IP Agreement with the Hebrew University Which provides1.354% of the company to University 2017- Exit deal for 15.3$ Dollar

31. Mobil-Eye & Intel & Hebrew University The Hebrew University Demand 40% of the IP which evolved since 2004 2014- recruit 890$ million on NY Stock Exchange 2002- The Hebrew University demanded 40% of Mobileye 2004- Amnon Sha’aShua Sign IP Agreement with the Hebrew University Which provide 1.354% of the company Sign on Waiver Agreement

32. Ways to invest in Israel

33. Ways to invest in Israel Financial structures • Directly purchasing shares from the Israeli target, Buying Control which provide participation in the management by placing directors. • Investing in Israeli VC. Due to The Prosperity of the Israeli High-Tech Field, it is becoming more and more popular • M&A • Establishing business operation in Israel

34. What we Can Do for you Structure of the deal • Which of the Investing structure is the Best According to the specific Situation • Proper flawless Company Registration (company) • Negotiation Review by detailed familiarity with Israeli Negotiating Culture • Corporation governance expertise- How to gain and keep the control of the asset • How to minimize the cost of the process

35. What we Can Do for you • Taxation Laws • How to avoid paying Unnecessary Taxes • How to explicit the benefits of the Israeli- Chinese treaties • How to spread The Taxation on the timeline for saving money as much as possible • How to accelerate the process and minimize the cost of it

36. What we Can Do for you Labor Law • Planning and Managing highly complicated requital systems for essential employees which keeps them Satisfied and ambitious • Paying buy options or shares • Professional and efficient taxation for the salary • Social Securityregulation • Planning massive firing processwhen it is necessary • IP ownership agreements with the essential employees • Obedience with the labor-right law’s

37. What we Can Do for you Being Sure of taking the right step • Accurate translation and interpretation of all the legal documents • In-depth familiarity with Israeli Lawyering field and Israeli administrator • Due diligence • Avoiding future expensive litigations • Avoiding unexpected restrictions and unexpected governmental regulations by in-depth familiarity with Israel Administrative Law

38. x 感谢您的关注 Thank you for your attention Or Gellert Gellert.or@gmail.com Hillary Huang 18510988455