1.
Funding Barriers and
Opportunities for
Turkish Start-ups
Taylan Demirkaya - IUE/Embryonix Accelerator
Center
Tuesday, May 21, 13

2.
Presentation Order
Embryonix - Important player for Izmir Ecosystem
Major Funding Resources in Turkey
The Eco System - A Scale Framework for Funding Institutions
Remarks
Tuesday, May 21, 13

3.
Embryonix - Our Goals
To foster creative entrepreneurship in Izmir
To support innovative ideas and turn them into businesses
Speak and publish to create awareness for high impact
entrepreneurship
Tuesday, May 21, 13

4.
We Provide
Product Development(Technical mentoring)
Business and Customer development(Business mentoring)
Start-up Tools
Events and event management
Networking
Office space and utilities
Small PR and Marketing budget
Tuesday, May 21, 13

5.
3 years 3 successful
Projects
2012:Online education and exam network 150 000
subs. in 6 months, PATH: Private investors. Worth:8M
USD
2011:Cloud computing and game hosting, over 20
engineers working, Top 5 in Turkey, PATH: Government
support 500 K, Worth: 4M USD
2012:Activity boxes for 3-6 years, subs. based, PATH:
Seed capital, Worth: 500K USD
Tuesday, May 21, 13

6.
Events
Tuesday, May 21, 13

7.
Crowd Funding? - In Turkey
First crowd funding example in Turkey
24 specialist; investors, consultants,
entrepreneurs
Every buyer of this book is an investor for
1 startup
5th publication released in 1 year, 15 000
TL accumulated
Golden Rules for Entrepreneurs
Tuesday, May 21, 13

8.
Small step for
entrepreneurs large step
for eco system
Tuesday, May 21, 13

9.
8 projects are on the go,We DO NOT only evaluate tech start-ups
Industrial design, fashion, hardware and chemistry are welcome
Tuesday, May 21, 13

10.
Major funding Resources in Turkey
Tuesday, May 21, 13

11.
Start-up Financing
Source: http://www.netvalley.com/silicon_valley/images/StartupFinancingCycle_reg_4.jpg
Tuesday, May 21, 13

12.
Government
KOSGEB: SME Development Organization: 100K TL for Entrepreneurs.
TUBITAK: Scientific and Technologic Research Council: Up to 10M TL for
technical R&D projects.
Trade Ministry: 100K TL for Tech startups.
Development Agencies: Like IZKA, more localized projects, up to 10M TL
Other Ministries: I missed the TRACK!
Tuesday, May 21, 13

13.
Banks
Still old school debt and equity financing
Private and mutual funds
Tuesday, May 21, 13

14.
Investors and Investment Institutions
Seed Capital: 5K to 75K - So far we do not have any
Angels: Up to 7 companies in Istanbul and Ankara,
Government Accredited 31 investors, Predicted investment
30M USD(2012)
VC: 7 Prof. VC companies, investment 1M to 30M USD
Private equity: 16 which are mostly dealing with government
projects
Tuesday, May 21, 13

15.
Filter for Start-ups We end up with:
KOSGEB
TUBITAK
Trade Ministry
Seed and Angel Investors
Development Agencies
Tuesday, May 21, 13

16.
Alternative Funding Resources
Crowd Funding: Not an option yet - We do not like to give
money just for supporting
3F: Friends, Family, Fools - BEST OPTION
Tuesday, May 21, 13

17.
The Eco System
Tuesday, May 21, 13

18.
3 Scales* - Over 5(5 is best)
Accessible: How easy it is to grant?
Sufficient: How the amount fits to needs?
Suitable: Is the amount used properly and efficiently
*This is not academic only personal observation
Tuesday, May 21, 13

19.
KOSGEB
Accessible: 5
Sufficient: 3
Suitable:2
Too much restriction for the usage of money
Amount is low for sustainability
Tuesday, May 21, 13

20.
TUBITAK
Accessible: 3
Sufficient: 4
Suitable: 4
Too much paper work
Not suitable for tech-start-ups
Best for R&D oriented academic projects
Tuesday, May 21, 13

21.
Trade Ministry
Accessible: 4
Sufficient: 2
Suitable: 3
Easily granted
When you begin to grow your business money
finishes
Tuesday, May 21, 13

22.
Angels and Seed
Accessible: 2
Sufficient: 4
Suitable: 5
Best choice for tech start-ups
Smart money
Not sufficient in number
Not trained
Tuesday, May 21, 13

23.
Development Agency
Accessible: 2
Sufficient: 4
Suitable:4
No direct support for start-ups
Indirect support like training, events is best
Tuesday, May 21, 13

24.
Remarks
Tuesday, May 21, 13

25.
For Government
Decrease RED TAPE
Increase the effectiveness of UI: Forms should be user
friendly
Let accredited institutions to manage funds
They know: HOW?, HOW MUCH? but they DONT know
WHY?
Tuesday, May 21, 13

26.
Investors and Investment Institutions
Needs more and intense training
Should also be strategic partners
Do not copy everything from US - Specialized ecosystem
Should not be too much risk averse
Tuesday, May 21, 13

27.
THANK YOU
@taylandemirkaya
Tuesday, May 21, 13