Turkey, a bridge between two great continents, with its young and connected population of 82 million, offers the right environment for startups to launch, test and go global. Here find our own Strategy Report for Turkey collaboration with @Velox Partner and @Startups.watch.

1. Strategy Paper
April 2019
What’s inside?
Turkey, a bridge between two great continents, with its young and connected
population of 82 million, offers the right environment for startups to launch,
test and go global. Significant exits are increasing, offering return ratios above
European averages. Angel and venture capital funding per capita remains
USD 1, leaving room for investment opportunity.
medium.com/212.vcwww.212.vc

2. Turkish Ecosystem

3. 82
76
60
Total Population Mobile Users Web Users
Web and mobile
penetrationinTurkey
# of people, mln, 2019 Jan
Growthrate (17-18) 1.1% 4% 9%
Penetration n/a 93% 72%
Source: Datareportal, UN 2018, GSMA 2019Q1, Turkstat 2018, Velox Analysis
Median Age
31
GDP per capita
USD 27K yoy 6%
Urbanization
75%
More than70% of Turkey’s 80 million
populationis connected,urbanized,
young and growing.
Turkey Overview
3

4. Source: Stackoverflow, Nexten.io Software developers in Europe & the world, The state of European Tech, Micheal Page, Glassdoor
EM Index
4
Turkey vs EmergingStockMarketIndexComparison
Lowcost investmentopportunity withapotential upside
Turkishpublic marketsareat a
50% discount comparedto other
EmergingMarkets’valuations.
Private marketvaluationsare also
seeing a ''TurkishDiscount''.Given
this,after global expansiona
Turkishstartupimmediately sees
a 2x increaseinvaluation.
4
5
6
7
8
9
10
11
12
13
14
Dec-10
Jun-11
Dec-11
Jun-12
Dec-12
Jun-13
Dec-13
Jun-14
Dec-14
Jun-15
Dec-15
Jun-16
Dec-16
Jun-17
Dec-17
Jun-18
Dec-18
MSCI EM Index BIST-100 Index
One-year forwardlooking P/E multiple

5. 0
10
20
30
40
50
60
70
80
0 200.000 400.000 600.000 800.000
AverageGrossSalary,‘000USD
Total # of Developers
Turkey
Source: Stackoverflow, Nexten.io Software developers in Europe & the world, The state of European Tech, Micheal Page, Glassdoor
According to Stackoverflow,the
populationof developers inEurope is
5.5 mln.
Turkey’s talentpool for developersis
on par withthatof Europe butwitha
significantly lowersalary rate,creating
great opportunity forstartupsto hire
and manage costs.
Last yearalone,more than3% of EU’s
techtalent came fromTurkey,making
it the #1 resourcefor talentacquisition
outside of the EU.
Low-cost with a well
performing talent pool
Countries with the most
economic salaries .
5
Switzerland
Israel
Germany
France
Netherlands
Denmark
Sweeden
Finland
Belgium
Czechia
Spain
Poland
Italy
Russia
Romania
Hungary
Ukraine

6. Source: Stackoverflow, Nexten.io Software developers in Europe & the world, The state of European Tech, Micheal Page, Glassdoor
Ecosystem Snapshot
Accredited
Angels
463
Angel
Network
24
Accelerator
Fund
10
VC, CVC,
CIO
163
GE, PE,
FDI
19
Techno
park
63
Non. Gov.
Organizations
19
R & D
Center
770
Incubator,
Accelerator
50
The development of a country'stechecosystemis key tobecoming a maturemarket.Turkey’s
techecosystemhas hadremarkablegrowthinthe lastdecade.Today,Turkey's venturecapital
and technology infrastructurecansupportstartupsof all sizes.
INVESTMENT
ENABLERS
6

7. Source: Crunchbase, Velox analysis
VC Funding Annually in Turkey
0
20
40
60
80
100
120
140
160
180
0
20
40
60
80
100
120
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Q1
#ofinvestments
Totalinvestmentvalue,USDmln
Size Number
7

8. Source: Startup.watch, Velox research
TR-CEE-MENA Angel and VC
funding comparison
238
202
193
58
91
10
9
463
165
38
24
59
Russia
Estonia
Lithuania
Hungary
Poland
Czechia
Serbia
UAE
Egypt
Saudi Arabia
Jordan
Turkey
Angel and VC investment
USD, mln, 2018
Region Fund per Capita(USD)
TR 1
MENA 2
MENA 1
MENA 2
MENA 49
CEE 1
CEE 1
CEE 2
CEE 3
CEE 69
CEE 155
CEE 2
8

9. Source: Startup.watch
Turkey Co-investment map
• Co-Investment hasbecome a popular
practiceinTurkey.
• 212 is the core playerinrounds with
co-investments.
9

10. 15
12
11
5
5
5
4
4
4
2
Source: Startup.watch, Velox research. Includes companies received investment prior to exit.
Top 10 VC transactions in Turkey
Company Industry
Modanisa E-commerce, fashion
Mikro Yazılım Business Intel., SaaS
Insider Marketing-tech, SaaS
Hurriyet Emlak Classifieds, Proptech
Foriba Fintech
Vivense E-commerce, furniture
iyzico Fintech
Albila Biotech
oBilet Travel
Lidyana E-commerce, fashion
InvestmentVolume 2018 - 2019 Q1 (USD, mln)
10

11. Source: Startup.watch, Crunchbase, Velox analysis
Funded startups in Turkey are
quicker to exit.
Startupswithcapital infusioncompared
to boot strappedcompaniesgrow faster
and exit quicker.
Capitalinjectionis a catalystforexits,
withfunded startupsexiting inlessthan
4 years asopposedto the industry
average of 6-7 years.
All Exits Top10 Exits
Time from
foundationto exit
5.4 years 9.7 years
Time from first
investmentto exit
3.8 years 5.5 years
11

12. Source: Startup.watch, Crunhbase, Velox analysis. *Exit volume estimated.
Top 10 exits in Turkey
Company Industry Year Acquirer
Trendyol Ecommerce, fashion 2018 Alibaba
Yemeksepeti Meal delivery 2015 Delivery Hero
OpsGenie DevOps 2018 Atlassian
Gram Games Game 2018 Zynga
Gittigidiyor Marketplace 2011 eBay
Markafoni Ecommerce, fashion 2011 Naspers
İyzico FinTech 2019 Naspers
Pozitron Mobile 2014 Monitise
Citus Data* Database 2019 Microsoft
Arvento* Fleet tracking 2015 Investcorp
InvestmentVolume (USD, mln)
728
589
295
250
218
203
165
100
100
50
12

13. Source: Startup.watch, Dealroom, Velox analysis. *Excluding Israel.
Healthy return ratio
93 81
317
193 225 265
26
122
232
690
93
17
1.417
200
0
400
800
1200
1600
2013 2014 2015 2016 2017 2018 2019Q1
USDmln
Total Investment Total Return
Turkey Ratio 1.3 2.9 2.2 0.5 0.1 5.3 7.7
EU ratio* 2.2 4.2 2.8 3.8 1.6 4.5 n/a
All investments from Seed to PE included. Return doesn't include IPOs.
Despitelimited investment
volume,Turkey deliversa
competitivereturnratio
(capital returnedto invested)
comparedwiththeEU
average.
Turkey’s startup ecosystem
increaseditsreturnrate from
5.3 in 2018 to 7.7 as of 2019 Q1.
Delayed Exits due to
political developments.
13

14. Source: Startup.watch, Velox analysis
B2B Enterprise Startups Overview
Company Industry
Mikro Software BI, RegTech
Netcad GeoLocation
Iyzico Fintech
Insider MarketingTech
Bimser Business Process
Apsiyon Property Management
Ardiç IoT
Segmentify MarketingTech
Ambeent Telco
Garaj Sepeti AutoTech
Total InvestmentVolume2016 – 2019 Q1 (USD, mln)
32
20
15
12
5
5
3
3
2
2
B2B SaaS Investment
2016 – 2019 Q1
(USD, mln)
Total
110 mln USD
Top 10 Investment
90%
Others
10%
14

15. 212 Perspective

16. iyziPOS
VirtualPOS with AI enabled fraud
prevention and PCI-DSS auth.
iyziBazaar
Marketplace payment provider for
businesses of all sizes.
iyziLink
Payment issuer w/out a shopping
medium.
iyzico App
Online shopping assistant for
consumers .
Source: TC, 212, Iyzico press publications, crunchbase
Region’s Leading Payment Platform
DevOps - SaaS
Incident Management
Platform
FinTech - SaaS
Simple, seamless, secure payment solutions for
online businesses to maximize conversion rates
and accept payments in their local currency.
HQ Istanbul 140 Employees
Op. 15 Countries 30k+ Merchants
2013
Seed
USD 1,4 mln
2014
Series A
USD 1,4 mln
2015
Series B
USD 6,2 mln
10 mlnvaluation
2018
EasternEuropeExp.
USD 4 mln
>150 mlnvaluation
2017
Series C
USD 15 mln
~45 mlnvaluation
Previous Investors
16
2019
Exit
USD 165 mln
valuation

17. Source: TC, 212, Insider case studies, crunchbase, e27
Born Local, Go Global
Insider GrowthManagementPlatform(GMP) empowersmarketersto deliverpersonalized
journeys acrossweb,mobileweb,mobileapps,and adchannels.Thus helping digital marketers
drive growthacrossthe funnel,fromAcquisitionto Activation,Retention,andRevenue.
DevOps - SaaS
Incident Management
Platform
MarketingTech - SaaS
The first integrated Growth Management
Platform (GMP) for online marketers
HQ Singapore 400 Employees
R&D Turkey & Ukraine 17 Active Markets
2005
Angel
USD 900k
2016
Series A
USD 2.5 mln
2018
Series B
USD 8 mln
Global brands from diversified industries that trusted Insider’s technology.
Unparalleledgrowthfollowedby best-in-classVC back-up
17

18. DevOps - SaaS
Incident Management
Platform
HQ Washington / USA 70 Employees
R&D Ankara / Turkey 40 Developers
Source: OpsGenie official webpage, Webrazzi, Bizjournals, Crunchbase, GazateSu, Velox research
Test Local, Go Global
OpsGenie is analerting andon-call management tool thatenables DevOps teamsto manage,
escalate,solveany alertand workinharmony withany othermonitoringtools.
2005
Foundation
ODTU Technopark
2012
HQ Move
WashingtonDC
2016
VC Intake
USD 10 mln
2018
Exit
Full stakes USD 295 mln
• Company transformation from custom IT
solutions to SaaS provider.
• Trend in the market that all-in-one incident
monitoring becomes the newnorm.
• Reaching 1000 customers witha startup and
enterprise mix.
• System integration with giants in monitoring
market.
• Sales&Marketing to grow customer base to 4k.
• 50% of revenue generated from USA.
• Atlassian buys full stakes of the company,keeps
and expands R&D in Turkey.
18

19. Fin-Tech
Payment
Marketing
Tech
212 at a glance
212 is a leading VC teamingup withentrepreneursgoingglobal,basedin
Istanbul,Doha,and SanFrancisco.
2011
Fund I $ 30 m
2018
Fund II € 50 m
www.212.vc
Startups
12
Invested
$ 23m
Value Created
$ 440m
Hotel Channel
Manager
Logistics
Tech
Geography
CEE, Turkey, MENA
Strategy
Test Local & Go Global
Team
Global Ambition
Stage
Scale-up
Sector
B2B Tech
19
Invested
€ 3.6m Software as a
Service
Marketing
Tech

20. www.212.vc
“There is a tremendous yet untapped potential in
MENA and Eastern Europe. The best enterprises were
born at times of crisis. We support the founders who
find comfort in this chaos .”
– Ali Karabey, Partner @212
20

21. Our Team
www.212.vc
NUMAN NUMAN ALIKARABEY EZABEL NIHMET DR. MAHER HAKIM IPEK CELIKSOZ
21

22. medium.com/212vcwww.212.vc
A good player plays where the puck is.
A great player plays where the puck is going to be.
– Wayne Gretzky
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