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The Trendletter
The Trendlines Group Newsletter

Vol. 1 | No. 3
 Q1 2011
Trendlines' U.S. Portfolio Companies Road Show: March 28 - 1 April
 
The Trendlines portfolio companies Road Show begins its U.S. tour on March 28.    
  
The Road Show offers Trendlines' shareholders and other investors the opportunity to meet a select group of Trendlines' portfolio companies in a format proven successful at our December 2010 Tel Aviv event.  The Tel Aviv program put 20 of our companies before more than 100 people in a high energy, highly-informative program. Following this incredibly successful event 15 of Trendlines' portfolio companies will hit the road with presentations in four cities: New York, 28 March; Baltimore, 29 March; Chicago, 30 March; LA, 1 April.  
  
To attend, you must register.

The companies will make 5-minute focused presentations, followed by a networking coffee break. Pre-scheduled one-on-one "speed-date" meetings come next, with time left for a networking reception and additional time for meetings.

See information about companies that are presenting. Or contact Anita Baker, Signal Business Development.
 
Trendlines Tips

  

Ask for Help by Providing a Solution
 

 
D. Todd Dollinger, Chairman and CEO of The Trendlines Group

 

Good management ideas are rarely new ideas.  Maybe they are never new ideas, just reinterpretations for our times.  If you're a business person who thinks your management concepts are original, read Dale Carnegie's 1937 How to Win Friends and Influence People to prove the point and help get your hubris under control.  Further to the point, Harvard Business Review recently published an idea that I've employed for quite some time.  Many years ago, I told a staff member that I appreciated her bringing me a problem to discuss (we all like to be consulted) but that she was also required to bring me at least one possible solution if she was going to bring me a problem.  Bad solutions, even a solution that we can all readily acknowledge as a bad solution, are O.K.  A minimum of one potential solution is the cost of admission to a problem resolution conversation with me.

So, why is a bad solution O.K.?  It's not just that it proves that you thought through the problem and looked for solutions, but - at least as important - it helps me help you.  Think of it as "kick-starting."  When I'm given an idea that represents a potential solution - no matter if I think it a horrible solution - you've got me off and running to help you find a right solution to the problem at hand.  Think of it as helping me help you.

I like to help solve problems.  I'm an investor and a manager, this means that I deal with problems constantly.  No project is ever developed and no business succeeds without confronting problems and dealing with them well.  The first part of dealing with problems well is dealing well with those whom you engage in your problem solving.  Help them help you.

 
The Trendlines Portfolio
Clinica cites RealView
RealView Medical, which is developing a miniature imaging capsule for long-term monitoring of patients with TCC, a common bladder cancer, is mentioned in a Clinica article about new techs that allow better visualization than ever.

SortFix receives enthusiastic review on "the next web" blog
With more than 1 million subscribers, a good review on "the next web" blog is excellent publicity for SortFix, developer of an intuitive system for Internet searching.

Senko Medical and Virtual Ports Sign a Distribution Agreement in Japan
Virtual Ports'™ laparoscopic tools eliminate the traditional "port per device" equation.  The company's products, EndoGrab, an internally anchored retractor, and EndoClear, which permits cleaning a camera lens without removal and reinsertion. EndoGrab enables less invasive laparoscopic procedures; it is estimated that there are more than 240,000 laparoscopic procedures performed in Japan every year, Japan is the second largest market in the world. Senko Medical, founded in 1950 and a longtime leader in developing and promoting medical devices, is distributing Virtual Ports' products in Japan.

MicroPointing in the Calcalist
MicroPointing's miniature pointing device, with its powerful, dot-sized, trackpad control, has better functionality than the PC touchpad, but requires only a tiny amount of space. MicroPointing was recently featured in the Hebrew paper, HaCalcalist.

Mantissa Develops First Generation Prototype
Mantissa is developing a unique MMW (millimeter wave) radar sensor for the detection and identification of suspected targets. Mantissa's MSHRS-300X is capable of detecting a human target at distances of 300 meters, all in real time and with an extremely low false alarm rate. The huge homeland security market and safe city initiatives are ripe for this novel low-cost sensor that complements and, in part, replaces common video/IR cameras. The company recently announced that the first in-lab prototype of the sensor was operational.  CTO Ehud Fishler says that the prototype is a big step in the validation of the solution and an outdoor prototype will be ready for initial testing will begin testing in a few months.

Stimatix Meets Primary and Secondary Endpoints in Pre-clinical Studies
Stimatix has announced that its colostomy management device met primary and secondary endpoints in pre-clinical studies. Successful clinical and pathological evaluation has confirmed repeatable and safe colostomy sealing for continence control. Designed to allow individuals to discretely manage their colostomy without the need to wear a traditional ostomy pouch, the discrete device is expected to improve quality of life and offer an elegant, non-surgical, and simple to use solution for round-the-clock continence control.
  
 Investor Notes

Deloitte Israel VC Indicator Survey

The Trendletter brings you key findings from the Deloitte Brightman Almagor Zohar Israel VC Indicator Survey. The survey identifies trends and expectations in the Israeli VC arena.

Key Findings from the Israel VC indicator survey:
  • Economic climate sentiment on the rise
  • Israeli M&A activity forecast to climb higher (with focus on the Internet and medical device sectors)
  • Possible investment strategy shift to earlier stage companies
  • Expectations for further future deployment of R&D outsourcing to the East
  • Forecasts for improvements in exit valuations are at the highest since Q1 2006
Wharton School Spotlights Israel
Take a look at this series of informative articles about the "drivers behind Israel's innovative impulse" from the University of Pennsylvania's prestigious Wharton.

Good news for Israeli high-tech in the Knesset's Economic Arrangements Bill
The high-tech sector emerged as a winner after passage of the Economic Arrangements Bill by the Israeli Knesset (parliament) in the last quarter of 2010.  The bill contains tax breaks for three groups-investors, scientists, and experts-whose return to Israel will become more worthwhile form the beginning of 2011, Globes reports. 

An amendment to the R&D law limits the amount of money that the State can demand from a company that received funding from the Chief Scientist and is later sold to foreign investors that do not maintain Israel operations.  A second clause in the bill, nicknamed the "Angels Law" and seen as advantageous to high-tech companies, allows three years of tax benefits for Israeli investors investing up to five million shekels in Israeli R&D-focused firms.

Israeli Q4 GDP +7.8% annualized, +4.5% for 2010
Economic growth performance for Q4 1010 exceeds Bank of Israel predictions.

Israel bidding to become a leader in renewable-energy technologies
Israel is at the forefront of a clean tech megaproject to search for alternatives to oil. Currently holding the chairmanship of Eureka, the European R&D program with more than 40 member countries, Israel wants to capitalize on the recent European Friends of Israel conference held in Jerusalem, attended by about 500 members of the European Parliament's 700+ members. The Jerusalem Post and Globes recently published a detailed look at Israeli initiatives that encompass a diversified range of R&D investors and innovators. 
 
  
Raises
The Trendlines Group, owners of the Misgav Venture Accelerator and the Mofet B'Yehuda Venture Accelerator and its portfolio companies, raised more than $25 M in 2010. The Trendlines Group acquired the two startup incubators in 2007 and hold interests in 55 portfolio companies, two of which are publicly traded. Trendlines is Israel's most active seed-stage investment company.  Since September 2007, Trendlines and its companies have raised more than $100 million.

ETView Medical completed a NIS 5.4 million public offering on February 21st.
In This Issue
Trendlines Road Show
Trendlines Tips
Portfolio News
Investor Notes
Raises
Staff News
Stimatix announced the appointment of Eric G. Weiss, MD, as medical advisor. Dr. Weiss is the Vice Chairman of the Department of Colorectal Surgery at the Cleveland Clinic Florida. He holds academic appointments as clinical professor of surgery at Florida International University in Miami, Florida.  In addition, he is an assistant professor of surgery at The Cleveland Clinic Foundation Health Sciences Center of the Ohio State University and a clinical assistant professor of surgery at the University of South Florida. He has published more than 200 manuscripts, more than 40 textbook chapters and given over 400 lectures in the U.S. and worldwide.

 

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