B To V Teknoloji Yatirim Cakmakci

Investing in Technology Investing in Technology ::Opportunities & ChallengesOpportunities & Challenges in Turkey in Turkey

A. A. Mete ÇAKMAKCIMete ÇAKMAKCI

Private Deal ConferencePrivate Deal Conference

1111 OctoberOctober 2008, 2008, İstanbulİstanbul

Private Deal Conference : TTGV 2008

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TTGV and Teknoloji YatırımTTGV and Teknoloji Yatırım

TTGVA foundation

TTGVA foundation

Teknoloji Yatırım A.Ş.A dedicated start-up investment vehiclemanaged by an

independent team

Teknoloji Yatırım A.Ş.A dedicated start-up investment vehiclemanaged by an

independent team

TURKVEN - TPEF 144 M USD in size

invested in 7 companiesWith 1 successful exit

TURKVEN - TPEF 144 M USD in size

invested in 7 companiesWith 1 successful exit

İŞ GirişimA Turkish PE/VC

structure with an initial size of 33 M USD

Already invested in 19 companiesWith 4 successful exits

İŞ GirişimA Turkish PE/VC

structure with an initial size of 33 M USD

Already invested in 19 companiesWith 4 successful exits

iVCiIstanbul Venture Capital Initiative

A dedicated Fund-of-funds SIF structurefor VC/PE funds focusing on Turkey

managed by the EIF

iVCiIstanbul Venture Capital Initiative

A dedicated Fund-of-funds SIF structurefor VC/PE funds focusing on Turkey

managed by the EIF

TDF A soft loan scheme upto 1 M USD per project

almost 250 M USD disbursed since 1991

TDF A soft loan scheme upto 1 M USD per project

almost 250 M USD disbursed since 1991

InvestorInvestor

ShareholderShareholder

InvestorInvestor

InvestorInvestor

ShareholderShareholder

Administrator/Administrator/Co-lenderCo-lender


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Teknoloji Yatırım A.Ş.Teknoloji Yatırım A.Ş.Teknoloji Yatırım Deal Flow (as of Sept 2008)Teknoloji Yatırım Deal Flow (as of Sept 2008)

Teknoloji Yatırım investment strategy :Teknoloji Yatırım investment strategy :to support the company through proof of to support the company through proof of

market towards market expansion market towards market expansion and exit through a share sale.and exit through a share sale.


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ProfessionalExperts

ProfessionalExperts

InvestorsInvestors

Lead-invest, Co-investLead-invest, Co-investLead-invest, Co-investLead-invest, Co-invest

Services, ConsultancyServices, ConsultancyServices, ConsultancyServices, Consultancy

Pre-incubation, Pre-incubation, Soft-loansSoft-loans

High-tech start-upsHigh-tech start-ups

InvestorsInvestors

Start-up : Teknoloji Yatırım ModelStart-up : Teknoloji Yatırım Model


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State of VC in TurkeyState of VC in Turkey


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State of VC in TurkeyState of VC in Turkey

Turkish LegislationTurkish Legislation CMB regulated GSYO structure (Venture Capital Investment Partnership)CMB regulated GSYO structure (Venture Capital Investment Partnership) Issues with IRR (up front capital), public reporting requirements, minority investor Issues with IRR (up front capital), public reporting requirements, minority investor

issues,exit distrubitions, leverage etc. issues,exit distrubitions, leverage etc. Investor ProfileInvestor Profile

Turkish Institutional VC Investor is a rare profile (GSYOs are captive)Turkish Institutional VC Investor is a rare profile (GSYOs are captive) Many blue-chips considering their on corporate venture operationsMany blue-chips considering their on corporate venture operations

TeamsTeams Hybrid set of skills (understanding of technology/research, business, Hybrid set of skills (understanding of technology/research, business,

““serial” enterpreneurship is rare)serial” enterpreneurship is rare) Serial enterpreneurship profile? (cultural)Serial enterpreneurship profile? (cultural)

Data/NetworksData/Networks TVCA (MIA)TVCA (MIA)

Deal SourceDeal Source Universities/Research OrganizationsUniversities/Research Organizations CorporationsCorporations ““Mercenaries”?Mercenaries”?


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iVCi : Istanbul VC InitiativeiVCi : Istanbul VC InitiativeA dedicated fund of funds operation to expand Turkish A dedicated fund of funds operation to expand Turkish

VC markets launched in November 2007,VC markets launched in November 2007,Eligability is Turkey focus.Eligability is Turkey focus.


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Geography of TDFGeography of TDF

Average Project Size : 300 K USDAverage Project Size : 300 K USD


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Human CapitalHuman Capital

1,900,000 students in 76 universities (40% female) 1,900,000 students in 76 universities (40% female)

110,000 working towards advanced degrees (25,000 PhD)110,000 working towards advanced degrees (25,000 PhD)

76,000 academicians (37% female) 76,000 academicians (37% female)

Engineering Dept. : 113,681 registered (16,481 graduated in 2003) – Top students still Engineering Dept. : 113,681 registered (16,481 graduated in 2003) – Top students still

choose engineering!choose engineering!

Science Dept. (including computer) : 102,897 registered (14,700 graduated)Science Dept. (including computer) : 102,897 registered (14,700 graduated)

R&D Staff : 28,964 (FTE - 2002) ; Private : 5,918 – very low (Germany ~480,000 (FTE) R&D Staff : 28,964 (FTE - 2002) ; Private : 5,918 – very low (Germany ~480,000 (FTE)

total)total)

There are over 50,000 Turkish students enrolled in University Programs abroad. (Over There are over 50,000 Turkish students enrolled in University Programs abroad. (Over

13,000 are in the US, 2,6% of all foreign students in the US, in the top 10)13,000 are in the US, 2,6% of all foreign students in the US, in the top 10)

340 from Turkey out of 11,516 S&E PhD awards in the USA in 2005340 from Turkey out of 11,516 S&E PhD awards in the USA in 2005

1,355 Turkish Academic Scholars employed in the US in 2005 - 20061,355 Turkish Academic Scholars employed in the US in 2005 - 2006

Ministry of Education and Higher Education Authority have generous scholarship programs.Ministry of Education and Higher Education Authority have generous scholarship programs.


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R&D ProgramsR&D Programs Turkey has an extensive experience in R&D support programs. Established structures Turkey has an extensive experience in R&D support programs. Established structures

and processes. However lacks large integrated sector/technology specific national and processes. However lacks large integrated sector/technology specific national

programs. Many replications in investments. Effect analysis and inventory lacking.programs. Many replications in investments. Effect analysis and inventory lacking.

IPR issues with TUBITAK funding. (new legislation in the pipeline)IPR issues with TUBITAK funding. (new legislation in the pipeline)

2002-2006 period national R&D spending doubled. 2013 target 26 Billion YTL (50% by 2002-2006 period national R&D spending doubled. 2013 target 26 Billion YTL (50% by

private sector.) Issues with human supply. 7 Billion YTL to be spent on R&D support private sector.) Issues with human supply. 7 Billion YTL to be spent on R&D support

programs. programs.

2008 Government R&D funding 1,3 Billion YTL2008 Government R&D funding 1,3 Billion YTL

Share of Private Sector in R&D spending : 37% Share of Private Sector in R&D spending : 37%

Basic Research and Applied Research Programs in 2008 :Basic Research and Applied Research Programs in 2008 :

TARAL by TUBITAK : 702 Million YTL (270 Million in Project Supports)TARAL by TUBITAK : 702 Million YTL (270 Million in Project Supports)

R&D Infrastructure Supports : 260 Million YTLR&D Infrastructure Supports : 260 Million YTL

Industrial R&D Supports to Private Companies in 2008 :Industrial R&D Supports to Private Companies in 2008 :

285 Million YTL (260 Million YTL by TUBITAK as grants, 21 Million YTL by TTGV as 285 Million YTL (260 Million YTL by TUBITAK as grants, 21 Million YTL by TTGV as

loans)loans)


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A ComparisonA Comparison

Turkey Compared in terms of selected KE MetricsTurkey Compared in terms of selected KE Metrics

SourceSource : WB Knowledge Assesment Methodology Homepage : http:// : WB Knowledge Assesment Methodology Homepage : http://www.worldbank.org/kamwww.worldbank.org/kam

PhotoPhotoss : kind courtesy of METUTECH : kind courtesy of METUTECH

AArrıı Teknokent Teknokent

ArArı ı 2 B2 Biinasnasıı A Blok Kat:7 A Blok Kat:7

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Maslak 34469 Maslak 34469 İİstanbul, TURKEYstanbul, TURKEY

www.teknolojiyatirim.com.trwww.teknolojiyatirim.com.tr

B To V Teknoloji Yatirim Cakmakci

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