Investments in ICT The Israeli model and Veriest as an example

Hagai Arbel, CEO3rd October 2012

Israeli government ICT investment model

• Investing in Technology using few methods:

• Office of the Chief Scientist

• Nationally supported technology incubation projects

• Foreign investors support

• Education

• More

Israeli Chief Scientist Office – Bridging investment gap

• Investing in companies at the “IDEA” phase

• Possibility to kick start the R&D project when VCs’ attention is hard to be drawn

• Leading the path for later investment – Acting as an initial trust factor

• Over $400M investment in 2010.

But I am no expert of government investments

Let me tell you a story about Veriest

Who is Veriest?

= ?

Veriest is the electronic design power behind some of the greatest IC designs

in the past 5 years:

What is the common factor of the following

Data Centers

What is the common factor of the following

Military

What is the common factor of the followingGaming, Video

Two years ago, we had an idea…

A new product that will help design electronic chips faster and with less bugs!

Veriest product investment

• As a project based company we could invest $2M over the first 1.5 years.

• The Chief Scientist office invested another $1M.

• First version of the product is already in the market

But what about Serbia?

Veriest’s investment in Serbia

• Veriest established a design Center in Belgrade – Local subsidiary established May

2011.

• Veriest own investment of $1M, created 25 jobs for Electrical engineers and counting

• Trained EE faculty graduates and help create the hard core of Chip design in Serbia

• Would have established a 100 engineer operation with external investment

• Can shift product development to Serbia (Israeli Chief Scientist would not invest)

Belgrade is waking up!

Excellent EE faculty

Employed EE doubled in the last two years

Foreign companies are getting in (small ones for now)

A small push and we are there

IT IS NOT ABOUT THE NUMBERS

IT IS ABOUT THE RIGHT MOMENTUM and SYNERGY!!!