venture capital financing turkey
TRANSCRIPT
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Mr. Patrick J. KeatingMr. Patrick J. Keating
General ManagerGeneral Manager
IS Venture CapitalIS Venture Capital
TurkeyTurkey
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• Former Managing Director, Strateji Securities, Istanbul
• Banking Experience: Morgan Stanley Dean Witter Merrill Lynch Hambrecht & Quist Investment Banking
Mr. Patrick J. KeatingMr. Patrick J. Keating
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Venture Capital Industry: Turkey
April 2004
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Institutional Venture Capital Industry
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Traditional Venture Capital Business Model
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Non-traditional Venture Capital Business Model
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Venture Capital Industry: Investment Stages
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Results of Venture Capital Investing in the U.S. Technology Industry: 1970 - 2000
Three Decades of Venture Capital Investment Yields 7.6 Million Jobs and $1.3 Trillion in Revenue: Research Finds That $36K of VC Investment Creates a US Job
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U.S. Venture Capital Average Returns, 2000
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One of the best U.S. VC’s results…
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Matrixs’ best bet…
It paid U.S.$.20 cents per share for optical networking company Sycamore Networks Inc. in 1998 and sold it in 2000 at U.S.$107.00 dollars per share, for a gain of 53,400%
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Probability of Success
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Turkish Venture Capital Industry
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Turkey: Institutional Venture Capital Companies
Venture Capital Investments Trusts (VCIT):
- Vakif Venture Capital Investment Trust
- İş Venture Capital Investment Trust
GP/LP Venture Capital:
- AIG Blue Voyage Fund
- Turkven Partners
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İş Venture Capital
İş Venture Capital was established in October 2000, incorporated in Turkey as a joint stock company with U.S.$30.0 million in paid-in capital.
Address : İş Kuleleri Kule:2 Floor:8 4. Levent 34330, Istanbul
website : www.isrisk.com.trPhones : +90 212 325 17 44Fax : +90 212 270 58 08
Employee BreakdownEmployee Breakdown
1 General Manager
1 AGM/Investment Manager
2 Finance&Accounting
4 Investment Analysts
1 Driver
1 Secretary
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İş Risk Shareholders
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Where are We Investing?
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Turkey
Geographical Profile
Total: 780,580 sq km
Land: 770,760 sq km
Water: 9,820 sq km
(Slightly larger than Texas)
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Turkey: People
Population: 68,106,469
Age Structure:
0-14 years: 27.2% (male 9,422,242; female 9,082,840) 15-64 years: 66.4% (male 22,978,251; female 22,243,477) 65 years and over: 6.4% (male 2,013,926; female 2,368,733) (2003 est.)
Average Age:
Male: 26.7
Female: 27
Total: 26.8
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Turkey: Educational System(1999-2000 School Year)
Levels of Education Number of Number of Number of
Schools Students Teachers
Preschool 9,992 251,596 15,596
Primary School 43,324 10,053,127 324,924
Secondary School 6,168 2,444,407 143,469
General High Schools 2,663 1,506,379 70,249
Voc. & Tech. High Schools 3,505 938,028 73,220
University: Undergraduate 78 1,330,241 N/A
University: Graduate N/A 74,838 N/A
Total 65,730 16,598,616 627,458
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Turkish Economy: Profile
Employment:
Employed in Agriculture: 43%
Employed in Services: 40.3%
Employed in Industry: 16.7%
Cash Crops: Wheat, barley, cotton, sugar beets, sunflower, potato, tobacco, vegetables, dried fruits, fresh fruits, nuts, ornamentals.Natural Resources: Hydro-Electric power, chromium, copper, tungsten, phosphate, boron, barite, bentonite, manganese, zinc, magnesite, perlite, wolfram, asbestos, bauxite, lead, mercury, sulphur, emery, meerschaum, marble, aluminium, iron, coal, crude oil, forests, livestock. Agricultural Exports: Hazelnuts, pistachio, figs, dried raisins and apricot, pulses, tobacco, citrus, pome and stone fruits, melons, vegetables, tomato products, cut flowers, processed food, poultry meat, cereals, cotton, tea.Other Exports: Manufactured goods, minerals, textile, thread, ready-to-wear clothing, leather, machinery, mechanical appliances, furniture, carpets, rugs, automobiles, buses, pharmaceuticals, man-made filaments, glass and glass-ware products, articles of iron and steel and aluminum.Major Trading Partners: OECD, EU, Middle-East and CIS countries, Russian
Federation.
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Turkey: Enterprise Turkey: Enterprise Definitions:Definitions:
Small-Scale Entreprises: less than 50 employeesMedium-Scale Entreprises: between 50 and 200 employeesLarge-Scale Entreprises: more than 200 employees
In Turkey, the number of small and medium-sized enterprises (SMEs) exceeds 200,000 and, increasingly, they are becoming the driving forces of its dynamic economy.
Small Scale Industry 98,4%
Large Scale Industry
0,5%
Medium Scale Industry
1,1%
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SME Growth Factors
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The Opportunity: The Capital “Gap”U.S.$500,000 – 3.0 Million
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İş Risk Portfolio
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Fourth Investment: Nevotek Software
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Microelectronics Value Chain
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Why Nevotek?
• Strong Management
• Demonstrated Product Demand and Differentiated Technology
• Large Fast-Growing Domestic and Global Market
• Scalable Business Model
• Predictable Exit
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Mr. Patrick J. KeatingMr. Patrick J. Keating
General ManagerGeneral Manager
IS Venture CapitalIS Venture Capital
TurkeyTurkey