Dec 25, 2015
Seed And Early Stage FundingA Practioner Perspective
Haluk [email protected]
Assessment Process
Investment Policy• The fund is investing to the firms/entrepreneurs who have a business plan
to commercialize technological innovation as service/goods or an innovative application of existing technologies as service/goods with the constraint that the commercialization activities mainly carried out in Turkey.
• The fund does not take basic research risk in any form, but can accept– Foreseeable and limited technology development,– Product development and– Market
risks. • The fund can invest in;
– ICT,– Biotech,– Life sciences– Advanced Material,– Other high value-added technology sectors
Pipe Line
Number
First Meeting 780
Second Meeting 480
Term sheet presented 8
Invested 6
Under final assessment 2
Rejected 470
Fund
Teknoloji Yatırım is currently managing early stage technology fund (Technology 2007) invested by TTGV.
The fund made 6 investment s within 4 years. 5 investments are still active Current areas of portfolio companies are Location Based Services, Business
Intelligence, Medical Safety Disposables , Medical Devices, Microelectromechanical Systems
3.6 m USD equity and 1m USD debt invested (commited or paid) in 6 portfolio companies.
Technology 2007 fund is almost fully commited/paid and fund managers is considering a new fundraising for both current portfolio companies and pipeline.
Before UCA, Erturk Tanrısever, the inventor of the device managed all research activities, product development, patent issues, and animal experiments.
UCA Medikal has been established in 2007 to take the device further. QESD(Quantum Energy Surgical Device) can cut/evaporate and coagulate tissues. Instead of ABC, QESD operates without any electrical current flow through patient
body by electrically neutral argon plasma beam and leaves superior results on tissue.
The final prototype (QESD) product is successfully accomplished after a 2 year of hard-work by fund managers due to inability of the inventor/entrepreneur.
One competitor around the world. http://www.plasmasurgical.com
Usd 400K investment
Patented in 9 EU Countries in addition to USA
an industrially producable body, plasma scapel, control unit, electronic and mechanic system
Portfolio: UCA Medical Medical Devices
a new round?
Portfolio: Infotech Location Based Services Infotech was established in 2000 by young entrepreneurs and an angel investor who
is in construction business.Although numerous useful technologies were created by the entrepreneurs, the firm operationally and financially mismanaged.
In 2007, the fund and other investors co-invested in Infotech having usd 2.5m debt, some negative EBITDA, many legal cases, wrong organization, and many other negative issues.
Infotech has been restructuring in every aspect since Q3 2007 by two major shareholders. The fund managers have been active in restructuring operations of the company mainly in financial, administritive and legal issues.
Today,Infotech has solved its operational, financial, organizational and administritive problems and is generating over a million usd cash to its debtors/shareholders
is exclusive digital navigable map producer for TeleAtlas
is leader in GIS applications and GIS content in Turkey
is one of the big players in fleet tracking
is one and only MPS based tracking company in Turkey
Watiıng for a good exit opportunity
http://www.infotech.com.tr
has been heavily investing in R&D and working for its recurring revenue base
Portfolio: Asset Medical Medical Safety Disposables Asset Medical was established in 2009 Q2 by the fund and two exceptional
entrepreneurs. One entrepreneur brought his medical production know -how and other entrepreneur brought her sales network in take off product.
Company was created from scratch paper and its aim is to create new designs for high contribution margin safety disposables and production of those products.
The first product family is needle free injection valve. Fund Managers has been working in the company as an entrepreneur since
inception. There is no local producer but many blue chips in US and Europe. Company will produce industry average net income margin in 2011
Couple of new rounds for new
product families, production sites,
etc...
www.assetmedikal.com
www.worldbi.biz
Portfolio: Worldbi Business Intelligence WorldBI was established in 2004 to develop busuness intelligence software as a spin
off from LOGO Business Solutions(largest ISV inTurkey) LOGO BS and the fund co-invested Worldbi in 2007 to create a new product having
powerfull attributes that can compete with globally well-known products. Product ( Suxess BI Platform) was completed in 2010 Q1 and the company market
Suxess in Turkey gain customer base and fine tune the product according to the new requirements .
a new round with a worldwide
plan...
..and a new set of datamining applications...
Portfolio: Microsense MEMS Microsense is established in 2011 with two academician and the fund. The company aims to provide low-cost IR dedectors known as microbolometer and
will operate as fabless. Approx. 10 competitors around the world use mainly VOx or a-Si technologies which
lead to high cost dedectors. Due to high cost microbolometers their penetration to current industries very low. Microsense uses CMOS technology is planning to produce low cost microbolometer
in hing volume. The product’s final version will be ready in Q4 2011
TARGET APPLICATIONS Security and Border Control Cover Surveillance Automobile Drive Assistance Distributed Sensor Networks Building Automation Industrial Controlt
PRODUCT FEATURES 128x128 Array Format 70µm Pixel Pitch Low-Noise Differential
Readout 30 fps Scanning Rate NETD < 500mK USB Camera Electronic
Product’s output
Due to its low cost and high yield and high production capacitythis will reshape IR-camera the industry !!!
STRUCTURAL PROBLEMS
• Finding the Investment Opportunities
• Deal Flow
• Making the Deal and Execution
• Legal Infrastructure
• Lack of Awareness / Lack of Practice
• Valorization of Investment (Exit)
• Lack of Exit Channels
Finding the Investment Opportunities : UNIVERSITIES
• Lack of Awareness
• Lack of TTO
• IPR Owned by University Professors
• Cultural Barriers for Commercialization
LEGAL INFRASTRUCTURE
• Most of the business run by friend and family capital (informally)
• Limited or No Institutional Investor Capital
• Continental Europe Legal System (Civil Law)