Mükafat Asset Management TECHINVESTORS Venture Capital Investment Fund
Mükafat Asset Management
TECHINVESTORSVenture Capital Investment Fund
Content
1. About Mükafat Asset Management
2. TechInvestors Venture Capital Investment Fund
3. About TUBITAK 1514 Venture Capital Funding Program
4. Our Venture Capital Investments
5. Targeted Investments
6. Appendices
1 About Mükafat Asset Management
About Us
Shareholders are; Aktif Bank (80%) and
Islamic Development Bank’s subsidiary Islamic Corporation for the Development of Private Sector (ICD, 20%)
All products and transactions are being approved by the Shariah Board according to the Interest-Free Finance Principles
Regulated and licensed by Capital Markets Board of Turkey (CMB)
Inventor of Turkey’s first Islamic overnight
money market fund
Products & Services
Shariah-Compliant Pension Funds
Discretionary PortfolioManagement
Shariah-Compliant Funds
Participation Funds
Venture Capital Investment Funds
Real Estate Investment Funds
TechInvestor VCIF (MBK)
Yaprak Renewable Energy VCIF (MYP)
Buket Venture Capital (MBB)
Karma VCIF
Short-Term Sukuk Participation Fund (MPF)
Sukuk Participation Fund (MPK)
Equity Participation Fund (MPS)
Aktif Participation (Dollar) Hedge Fund (MPD)
First Fuel Sector (MBG)
Atasehir Metropol (MPG)
We are managing the pension savings received by the pension companies on behalf of the participants, in accordance with the principles of interest-free financing under the supervision of Shariah advisory board. We depend on our deeply belief in faithful ownership.
We are actively manage individual and institutional savings on their behalf with a high level of personal services to underpin their investment objectives with our «Earn without Interest» approach.
2 TechInvestors VCIF
Fund Facts
Fund Investment Strategy
Fund is planning to be a partner/founder of venture public/private companies established in Turkey, with high growth potential and the ability to develop and product technology.
Fund Size 200 million TL
Fund Facts
Manager Mükafat Asset Management
Fund’s Investment Priorities TUBİTAK 1514 Venture Capital Funding Program*
Estimated # of Investments 4-6 investments per yearTotal 20 Investments
Maturity12 years with the liquidation period(Last 7 years is the liquidation period)
First Period June, 30 2019
Sold to Can be only sold to QIs
Distribution Channel Aktif Yatirim Bankasi A.S.
Currency TL
* TUBITAK: Scientific and Technological Research Council of TurkeyFor Details of the Program please see Chapter3
Fund Facts
Management Fee 2.50% p.a.
Performance Fee 20 % (Threshold: CPI)
Unit Price Announcement Daily indication
Subscription and Redemption Fee N/A
Custodian and Fund Service Aktif Yatirim Bankasi A.S.
Risk Management, Research Unit, Internal Control and Internal Audit System
Mükafat Asset Management
Auditor KPMG
Regulator Capital Markets Board of Turkey (CMB)
Fund Facts
* If there is no customer purchase or sale transaction in the relevant periods, Invested Venture Companies are not subject to valuation. ** After initial commitment and demand period, investors may give buy order every day, during the following 24-month *** Invested venture companies are subject to valuation and the fund unit price will be announced, in December**** If the specified dates are holidays, the next business day will be taken into account
* Period/Month** Demand Periods for
Buying Fund Units
*** Invested Venture
Companies Valuation
Period
Result of Invested Venture
Companies Valuation and
Unit Price of the Fund
Announcement Date,
****Buying
Demand Realization
First Period for Demand June 30, 209July 01, 2019
1 TLJuly 01, 2019
1. Valuation Period 1 July - 15 Dec 2019 16 Dec - 31 Dec 2019 Last day of Dec. First 5. day of Jan.
2. Valuation Period 16 Dec. - 15 June 2020 16 June-30 June 2020 Last day of June First 5. day of July
3. Valuation Period 16 June - 15 Dec 2020 16 Dec - 31 Dec 2020 Last day of Dec. First 5. day of Jan.
4. Valuation Period 16 Dec. - 15 June 2021 16 June-30 June 2021 Last day of June First 5. day of July
Fund Facts
Targeted Sectors - Priority
Smart TransportationRoad Safety, Autonomous / Electric Vehicles,
Unmanned Aerial Vehicles, Integrated Transportation Services, Clean
Transportation, Automotive, etc.
Energy and Clean TechnologiesEnergy, Renewable Energy, Energy
Efficiency, Waste-to-Energy, Intelligent Buildings, Intelligent Cities, Advanced
Materials and Chemistry, Energy Storage, Environment, etc.
Intelligent Production Systems(Digital Transformation in Industry)Machinery Manufacturing, Robotics,
Automation, Layered / Rapid Production, Industrial Informatics, Materials / Chemical
Technologies, etc.
Communication and Numerical TransformationMeasurement-Test-Analysis, Electronic Systems,
Decision Support Software, Communication, Education, Big Data, Virtual / Augmented Reality, Artificial Intelligence, Information Security, Cloud
Computing, Web Applications, Mobile Applications, Wearable Technologies, Audio /
Video / Text Processing, etc..
Health & WellnessMedication, Diagnostic and Analysis Kits,
Biomaterials, E-Health, Medical devices, etc.
Sustainable Agriculture and NutritionWater Efficiency, Seed, Smart and Clean
Agriculture, Functional Food, Food Safety, Aquaculture, Plant Health, Animal Health
and Welfare, etc.
Fund Facts
Investment Criteria
Right Team Right Product/Service Market Size
Market Entry Strategy Technology Exit Strategy
Scaling
Timing
Fund Facts
Investment Process
Application Face to faceInterview
Technical and Financial DD Deep Dive Investment
I II III IV V
Fund Management
Fund Manager (Securities)Kağan CandanSinan Soyalp
Investment Committee
Hulusi BerikTimuçin BilgörKağan CandanZeynep Pelin Atalay ÇidamOsman GencerYomi Kastro
Consultants Aydın Ersöz
Fund Management Team
A Management Team will be responsible for the different phases of all fund management processes from the selection of the venture company to the post-investment follow-up. This team will hold an Investment Roadmap meeting in every six month with participation of the representatives of all institutions.
Fund Management
Experience Transfer
The Experience Transfer core team consisting of representatives from the Fund Management Team and the organizations, will meet regularly every quarter.
Exemplary Activities of the Core Team: Participation to at least 3 Risk Analysis Assessment, Current Situation and Market Situation Analysis in one year. Participation to at least one Determination of the Terms of the Agreement Meeting in one year. Participation to Legal Processes. Attend to at least one mentor study per month. Attend at least once a year on a case study to determine possible investment exit scenarios at the initial investment stage. Participate as an observer to the Investment Committee meeting which will be held for investment decisions. Participate in activities for determination of valuation methods for at least 2 investments at the exit stage, etc.
3 TUBITAK 1514 - Venture CapitalFunding Program
TUBITAK 1514
TECHNOLOGY VENTURES
VENTURE CAPITAL
INVESTMENT FUNDS
TECHNOLOGY TRANSFER
OFFICES (TTO)
RESEARCH INFRASTRUCTURES
(AA)
TECHNOPARKS (TGB)
UNIVERSITIES
In collaboration with TUBITAK and Republic of Turkey Ministry of Treasury and Finance,
to support (via grants) Technology Transfer Offices(TTOs), Technoparks (TGBs) and Research Infrastructures(AAs) that invest in Venture Capital Funds
therefore, supporting early stage (SME size) technology ventures, that have the potential to add value to the Turkish economy, as they
commercialize their R&D and innovation based products and Technologies.
Purpose of the
PROGRAM
TUBITAK TREASURY
TUBITAK 1514
Objectives of the Program
Making a contribution to meet financing needs at the seed, start-up or development stage in Turkey by providing grant to Venture firms with financial needs
Making a contribution to the creation of a venture capital ecosystem by encouraging the establishment of new funds that will provide capital to Venture Firms and Fund Managers that will manage these Funds.
In order to ensure sustainability of the created ecosystem, enhancing the financial support that is specific to each stage of the Venture firms’ life cycle.
Empowering the Venture Capital Funds that support Venture Firms in Turkey and improving these processes with support from the government.
TUBITAK 1514
TUBİTAK**
MINISTRY of TREASURY and
FINANCE
EARLY STAGE
TECNOLOGY VENTURE 1
Venture Capital
Investment Fund*
TTO – TGB -AA
TTO – TGB -AA
TTO – TGB -AA
EARLY STAGE
TECNOLOGY VENTURE 2
EARLY STAGE
TECNOLOGY VENTURE 3...
OTHER INVESTORS
Funding Model
Institutions: TTO (Technology Transfer Offices), TGB (Technoparks) , AA (Research Infrastructures)
TUBITAK 1514
Application Process
Grant Call
•By TUBITAK
Application
•joint project proposal to TUBITAK by the institutions
Panel Evaluation
•By TUBITAK TUBITAK Approval
Grant Call
•By Treasury
Application
•proposal to the Treasury by the VCs Treasury Approval
Simultaneous Contracts with
•TUBITAK
•Treasury
TUBITAK 1514
Where We Are
TÜBİTAK announced the following numbers and estimations for the call: 10 applications were eligible to be supported:
10 applications by 23 institutions 334 ventures to be supported Total estimated investment: 980 million TL at first close; 1.8 billion TL at final close
TUBITAK 1514
Grant Conditions
Eligible Institutions; Technology Transfer Offices (TTOs) Technoparks (TGBs) Research Infrastructures (Aas)
TUBITAK Grant Budget: 100 million TL
Grant Amount per Institution: 50% of institution’ investment Min 2 million TL / max 20 million TL
Know-how Accumulation: It is expected that a representative from each institution takes part in 3 due diligence activities each year and also gain and share experience with the ecosystem on company valuation, legal matters and commercialization.
Capital Accumulation: After fund’s exit, TUBITAK’s grant amount is expected to accumulate within the institutions, to be used in the funding of early stage technology ventures in the future
TUBITAK 1514
TUBITAK Evaluation Criteria
Technical quality Relevance and quality of the processes developed by the institutions for the success of the project
Feasibility Eligibility of the institution Fund structure
Impact Institutional capacity building and sustainability
Ventures to be Supported
Max 7 years old at the time of initial investment by the VC SME status Early stage technology based ventures Must have received a R&D and/or innovation grant within the past 5 years by the institutions specified in the grant call
4 Our Venture Capital Investments
Our Venture Capital Investments
Pavo
Field of ActivityNew generation cash Register
Capital (million TL)16
Establishment2014
AuditorKPMG
EBITDA (million TL)8,8 *
Total Income (million TL)23,7 *
Gross Profit (million TL)10,6 *
Net Profit (million TL)9,1 *
215,000 cash registers licensed on the market since its
establishment.
23,000+ devices and 50,000+ food apps where 4 large
food company applications work
Integration applications made on 15.000 cash registers
High profitability rates provided by a core team of 15 people
Continuous revenues exceeding 50% of total turnover, creating recurring revenues
*2018/Q2
EcoPos
Become one of the leading players in the sector in 2 years from the establishment
Over 4,000 devices in 81 provinces
10.000+/mth call received in call center
A widespread service network that can serve across the country
Tested and proven solution set and software in national chains
Capital (million TL)6,8
Establishment2016
AuditorKPMG
Amount4.037
EBITDA (million TL)5,3 *
Total Income (million TL)14,8 *
Gross Profit (million TL)6,8 *
Net Profit (million TL)5,5 *
Field of ActivityRetail Payment System
*2018/Q2
NKolay
provides services across Turkey with 576 N Kolay Transaction
Centers and 4,183 kiosks
More than 165 agreements with institutions
First prize winner of EFMA’s(European Financial Management Association) «Physical Distribution» award
ROA growth from 15% (2015) to 23% (2017)
ROE growth from 36% (2015) to 183% (2017)
Capital (million TL)3
Establishment2014
AuditorKPMG
Transaction Number per year75 million
EBITDA (million TL)5,8 *
Total Income (million TL)17,6 *
Gross Profit (million TL)5,2 *
Net Profit (million TL)3,7 *
Field of ActivityPayment Services
BDDK Lisanslı Türkiye’nin en büyük ödeme kuruluşu olmayı
başarmıştır
*2018/Q2
UPT
BDDK Lisanslı Türkiye’nin en büyük ödeme kuruluşu olmayı
başarmıştır
Field of ActivityPayment Services
Capital (million TL)20
Establishment2014
AuditorKPMG
EBITDA (million TL)7,7 *
Total Income (million TL)28,6 *
Gross Profit (million TL)12,7 *
Net Profit (million TL)6,6 *
Money Transfer system serving at 10.000 points
In more than 200 countries
Number of transaction and profit growth doubled from 2016 to 2017
ROA growth from 13% (2016) to 28% (2018/Q2)
ROE growth from 17% (2015) to 40% (2018/Q2)
Türkiye’nin en fazla para transferi yapan ve gönderim/ödeme
ağına sahip yerli ödeme hizmetleri kuruluşu haline gelmiştir *2018/Q2
EKent
*2018/Q2
Executes 1 billion transactions, 2 million smart transportation
cards sales and 8 million smart card management in a year
High volume Electronic Fare Collection System of Turkey with 300 million magnetic ticketing in total.
500 million TL turnover per year is
the world's largest stadium transformation project including
infrastructure transformation in 51 stadiums
1.5 million of 3.7 million Passolig subscribers download the
mobile app
Physical ticket sales channels are 5,000 with N Kolay Kiosk
integration
Field of ActivitySmart City Solutions
Capital (million TL)143,5
Establishment2002
AuditorKPMG
EBITDA (million TL)9,6 *
Total Income (million TL)42 *
Gross Profit (million TL)2,7 *
Net Profit (million TL)5 *
SigortaYeri
*2018/Q2
Turkey’s largest domestic broker with 4% market share (2017:2.4%) and 27% revenue growth
378% increase in the number of policies in the first 6 months of
2018
Turkey's most efficient insurance broker in terms of premiums and commissions per employee
2-fold growth in premium production in the first 6 months of 2018
Over 1 million corporate and individual customer
Capital (million TL)37
Establishment2013
AuditorKPMG
# of Transaction565.652
EBITDA (million TL)26,4 *
Total Income (million TL)30,7 *
Gross Profit (million TL)25,7 *
Net Profit (million TL)20 *
Field of ActivityInsurance Services
multiple distribution channel structure
DoubleClick
Doubleclick which was founded in 1996, was sold to Google in
2008 for $3.1 billion
Exited in 2006 during the initial phase of Google acquisition
Provided X 10 returns (USD bases) in 2 years to its Turkish investors
Value (million USD)70
Establishment1996
Investment2004
Exit2006
Exit Value (bn USD)0,8
MultiplierX10
Field of ActivityOnline ad agency
YemekSepeti
Yemeksepeti is the largest internet venture of Turkey
In 2009, exited from the European Founders Fund. Up to this point, it showed 300-fold growth. In 2015, yemeksepeti.com was sold to
Delivery Hero for USD 589 million
In 7 years, it offers x100 multiplier to its initial investors.
Value (million TL)0,2
Establishment2001
Investment
Exit2009
MultiplierX100
Exit Value (million USD)3
Field of Activitytakeout food ordering service
2000
Segmentify
Segmentify, is a platform that create a personalized shopping experience and increase sales by making real-time personalized product recommendations
Segmentify sold its shares to ACT Fund in 2018
In 4 years, it offers x180 multiplier to its investors
Value (million TL)0,2
Establishment2014
Investment Year2014
Exit Year2018
Exit Value (million Euro)6
Multiplier
Field of Activitypersonalized shopping platform
X 180
5 Targeted Venture Investments
Targeted Investments
Pipeline Process
Prospective Ventures Screening/Filter Deep Dive Offer / Agreement Due Diligence
I II III IV V VI
Signature Closing
4 proactive prospective ventures
35 prospective ventures w/reference
39 Ventures 8 Ventures 4 Ventures TBD TBD
TechInvestors VCIF, has evaluated a total of 39 venture company since July 2018. 35 venture company eliminated during screening/filter and deep dive analysis. Proposal studies of 4 venture investment have started.
Targeted Investments
Front Runners
Summary / Investment Advantages Ticket Size Targeted ShareSource of Pipeline
Status
Live online special training platform. The technology level and the potential for expansion are high.
5 million TL 10% InnovabanAgr. Preparation
Mass funding platform. Pioneering, innovative and powerful team advantage.
7 million TL 10% ITU Gate
Agr. Preparation
Offers solutions such as; RSP – eSIM, OTA, DSTK in telecom; HCE (Host Card Emulation), Mobile Pos in finance and artificialintelligence ChatBot. Strong with patented technologies. Target market is wide and competition is rare.
20 million TL 15% BUBA
Agr. Preparation
Making difference with its powerful know-how products and strong management team in the health Technologies sector.
30 million TL 10% Innovaban
Agr. Preparation
Targeted Investments – Examples:
Endoscope washing and disinfection device
Endoscope drying and storage cabinet
Endoscope leak tester
Endoscope image recording device
Functional, ethical and world-class production
Domestic sales / export balance
remote and on-site service
Thanks to the competitive structure, the possibility of expansion in a wide geography including Europe
Talented and visionary management team with sector experience
Positive EBITDA
MEDICAL DEVICE andSOFTWARE PRODUCTION
Targeted Investments – Examples:
FACE RECOGNITIONSYSTEM
Among the Top 2 Companies in the Global Face Recognition Sector
99.8% detection and recognition accuracy rate
Applicable to all cameras
8 times faster than competitors thanks to special algorithm
Young and creative R & D team
Border Control
Time-based Control
Time Range Control
# of People Control Vehicle Control
Unattended People Control
Zone Control
Location and time-based
Control
Visitors Module
Targeted Investments – Examples:
FACILITY MANAGEMENTSOFTWARE
Integrated service and facility management
Centralized help desk
The brand preferred by 22 city hospitals
Sustainable income through license sale and rental model
Talented and visionary management team with sector experience
customer service
management Personnel service
management
Live support
Service and facility
management
Service management
IT service management
professional chambers
management
Targeted Investments– Examples:
AGRICULTURAL FINANCING
Pozitif EBITDA
Financing for working capital needs at the time of purchase of inputs, to farmer
Affordable | Save up to 8% on each purchase
Honest | Transparent cost structure, no hidden fees
Fast | Transactions are completed in less than 4 minutes
Easy | The process is completed when the online process is at the dealer
Talented and visionary management team with high sector experience
Widespread and reliable dealer
network
58.531 sack manure and feed sale
Traditional and alternative credit scoring model
270.586 TLFarmers Savings
6 Appendices
Management
Kagan Candan General Manager/Fund Manager/Member Investment Committee
Mr. Candan graduated from the Department of Business Administration, Istanbul University. He holds Capital Market Activities Level III License, Derivative Instruments License and ISMA certificate. Mr. Candan having executive roles in Yapı Kredi Bank Treasury Department between years 1993 and 2006 and in Raymond James Securities Asset Management between years 1996 and 2009. Mr. Candan specialized in Treasury Management, Fund Management and Discrete Portfolio Management. After leaving the position of Department Head role in Aktif Bank Treasury, Candan started working as the General Manager of Mükafat Asset Management.
Sinan SoyalpFund Manager
Sinan Soyalp serves as Fund Manager at Mükafat Asset Management. Mr. Soyalp obtained his diploma in science field from Istanbul Robert College, his bachelor's degree from Department of Mathematics, Earlham College and his postgraduate diploma from Department of Quantitative Finance, Istanbul Bilgi University. He holds Capital Market Activities Level III License and Derivative Instruments License. He started his professional life at various positions as an intern at Ata Yatırım Ortaklığı, Economic Research Department of ING Bank and Strategic Planning Department of Sabancı Holding, respectively. Subsequently, he maintained his professional life as fund manager at SRT Capital. After starting to serve as analyst at Alkhair Portfoy in 2011, he was promoted to the position of portfolio manager in 2015 and maintained his position, under which he was in charge of Islamic mutual funds, until the mid-2016.
Management
Osman GencerMember Investment Committee
Osman Gencer serves as the Group Head of Private Equity Division of Aktif Bank since year 2014. Priorly Mr. Gencer had executive roles in the FinanceDepartments of Koç Group, Alarko Group, Kibar Group, Hitay Investment Group and Yapı Kredi Bank. In Altek Alarko Holding Mr. Gencer had primaryresponsibility in several projects such as international fundraising and feasibility of 164 MW Kırklareli Combined Cycle Power Plant, and 76 MW KârakuzHydroelectric Power Plant. Between years 2007-2011 he performed first as Group CFO and then as General Manager of Teknoser in the HitayInvestment group. Between years 2014 and 2017 Mr. Gencer worked as CEO two subsidiaries of Aktif Bank of Pavo Corp. and Echo InformationManagement. Mr. Gencer is currently Board Member of Pavo Corp. and Executive Committee Member of Echo Information Management.
Zeynep Pelin Atalay ÇidamMember Investment Committee / Board Member
Zeynep Pelin Atalay Çidam serves as Head of Corporate Finance Department at Aktif Bank, and Board Member at Mükafat Asset Management. She has more than 16 years experience in the fields of Corporate Finance and M&A. Before holding office at Aktif Bank, she had worked three years in Audit Department and ten years in Corporate Finance Department, accounting for a total of 13 years, at Deloitte. She performed due diligence procedures for many foreign and Turkish investors, and provided advisory services for sales and procurement activities at Deloitte. She worked in Corporate Finance Department for 6 months at Deloitte Melbourne office. Managing the acquisition and incorporation procedures of five companies at Aktif Bank, she also carried out Project financing processes for Aktif Bank's clients. Çidam had her Bachelors Degree at the Department of Economics (English), Istanbul University, and completed her master's degree in finance and investment at Exeter University, UK. She has an advanced level of English knowledge, and intermediate level of German. She completed the valuation courses under the program of American Society of Appraisers. Çidam is having CPA certificate.
Kagan Candan| [email protected] | +90 212 340 8305
Osman Gencer| [email protected] | +90 212 340 8784
Elif Pehlivanli|[email protected] |+90 212 340 8369
Mükafat Asset ManagementBuyukdere Cad. Astoria Kuleleri No:127 B Blok 1803 Esentepe 34394 Sisli/Istanbul
Tel: +90 212 376 3200Fax: +90 212 340 8036