In this episode of "Invest in Türkiye Talks", we explored the transformative journey of Revo Capital Founding Partner and Managing Director Cenk Bayrakdar. With a storied career in corporate leadership at Turkcell before transitioning to venture capital, he offers a wealth of insights into the evolving landscape of investment and entrepreneurship in Türkiye.
Bayrakdar's extensive tenure at Türkiye's leading telecommunications company Turkcell laid the foundation for his expertise in innovation and corporate strategy. During his time there, he spearheaded numerous initiatives aimed at launching new services, each with a stringent six-month success window. The high stakes of this role—requiring services to quickly garner over a million subscribers—sharpened his strategic and operational acumen.
One of Bayrakdar's significant contributions at Turkcell was the conceptualization and development of platform capabilities to support startups. This initiative, dubbed "carrier services", allowed startups to leverage Turkcell's infrastructure, with revenue-sharing models that spurred mutual growth. However, despite the success of these partnerships, the idea of investing directly in these startups through corporate venture capital faced internal resistance and remained unrealized.
Undeterred by the challenges within the corporate environment, Bayrakdar eventually decided to pivot towards venture capital, driven by his belief in the potential of startups he had seen flourish on Turkcell's platform. This transition marked the inception of Revo Capital, where Bayrakdar applied his corporate experience to identify and nurture promising ventures.
Bayrakdar outlines the evolving strategies of the Revo funds on this podcast, highlighting a significant shift from Revo1 to Revo3. The Revo1 fund primarily focused on early-stage investments in fintech and cloud strategies but faced challenges as companies struggled to secure further funding without international expansion. In response, the Revo2 fund adapted its strategy to emphasize supporting founders in transitioning their businesses abroad, enhancing their chances of success. The Revo3 fund represents a further evolution by expanding its investment focus to include Series A, B, and potentially C rounds, addressing a critical gap in the Turkish market and providing comprehensive support for startups throughout their growth journey to become globally recognized brands.
One of the standout themes of the discussion is the investment incentives provided by the Turkish government. Cenk emphasizes that Türkiye is a leader in offering incentives for companies operating in techno parks. These incentives include significant tax reliefs, such as VAT exemptions, no income taxes for employees, and no corporate income tax on products developed within these parks. Cenk states, "Türkiye probably has the best incentives in the world for startups and tech companies," highlighting how these benefits can significantly enhance a company's financial viability and growth potential.
Cenk also discusses the growth of R&D in Türkiye, noting that while many companies in his portfolio have headquarters outside the country, they are increasingly leveraging Türkiye's resources for their R&D efforts. This trend is not only beneficial for the companies themselves but also contributes to the overall growth of the Turkish economy. He points out that out of the 19 companies in their second fund, 16 have headquarters outside Türkiye, yet they all maintain a strong presence in the country, particularly in R&D activities.
This podcast also highlights the growing interest from global investors in Türkiye. Cenk shares that their last annual event "Building Bridges," attracted 650 investors from nine different countries, showcasing the increasing appeal of the Turkish investment ecosystem. He believes that as more investors recognize the opportunities available in Türkiye, it will become essential for emerging market investors to consider the country as a viable option for their portfolios. "I see the coming years very bright," he states, expressing optimism about the future of investment in Türkiye.
Cenk's insights into the positive outlook for investment in Türkiye are particularly encouraging. He notes that there is a strong appetite for investment in the country, driven by both local and international players. This growing interest is not only beneficial for the companies operating in Türkiye but also for the overall economic landscape, as it fosters innovation and growth.