I realized that it has been nearly six months since my last post. Each time I think of posting an update on our progress and the market in Turkey, I end up deciding to wait until we close on the deal and unfortunately closing date keeps getting postponed.
On the fund raising front, we continue to meet with new potential LPs and at the same time, update interested LPs regularly on market news and deal flow. The good news is, we are seeing the light at the end of the tunnel, and we are sure it is not a train! 🙂
There have been more than 10 new investments within the last six months and at least 5 new investments are currently in due-dillegence phase. Most of the investments have been announced atWebrazzi. However I’d like to make a special mention of eBay’s recent acquisition. eBay purchased 93% of GittiGidiyor.com – “a Turkish auction site founded by Burak Divanlioglu and Serkan Borancili at $215million valuation (Valuation is based on Webrazzi news). It is important to note that eBay already had 20% ownership of GittiGidiyor. We are thrilled to see the first major exit in Turkey.Congratulations to everyone who is involved in the deal, especially to Burak and Serkan!
I would also like to share my observation on how entrepreneurs are evolving in Turkey. I moved to Istanbul about 15months ago and e-tohum Top-15 meeting in 2010 was the first event I attended here. This year, I attended the same event again and I was amazed with the difference. Last year, average level of knowledge on funding, process, structure, strategy, etc was basic at best. This year, most attendees had in-depth knowledge, and more importantly, were ready to execute! Yes, knowledge alone is not enough to make a start-up successful. Nevertheless, combined with the right team and right execution, it will drastically increase the chances of success for a start-up. Mistakes in execution are likely to be made, but they can serve as lessons along the way. Starting out with the wrong team, on the other hand, is a recipe for absolute failure.