VC  for  the  Commercializa0on  of  

the  R&D  Output  A.  Mete  ÇAKMAKCI  

Technology  Development  Founda0on  of  Turkey  EIB  Regional  Forum  2010  “Smart  Growth  for  Turkey”  

22  October  2010,  İstanbul  

Back  to  Industrial  Policy  

EIB  Regional  Forum  2010  “Smart  Growth  for  Turkey”  

   Can  Venture  Capital  be  deployed    as  a  strategic  vehicle  of  a  “sound”  industrial  policy?  

   Can  public  align  its  interests  and  priori0es  with  those  of  the  private  investors?  

   How  best  to  balance  the  tempta0on  to  pick  the  

winners?    

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Opportunity  Equity  

Value  

Knowledge  

Value  

MARKET  

INVESTMENT   VISION  

EXECUTION  

Exploi0ng  Knowledge  

EIB  Regional  Forum  2010  “Smart  Growth  for  Turkey”  

Compe00veness  

Pre-­‐Incuba0on  

Concept  

Start-­‐Up  

Growth  

Public  Interven0on  Comfort  Zone  

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Innova0on  takes  systema0c  pa0ence  and  diligence:  VC  provides  the  networks,  valida0on  and  visibility  in  addi0on  to  the  

cash.  (A  team  with  hybrid/cross  skills  set)  

VC  Is  Not  Just  Money  

EIB  Regional  Forum  2010  “Smart  Growth  for  Turkey”  

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Concept   Start-­‐up   Growth  

0,5  –  1  year   1,5  –  2  years   3  –  5  years  

Condi0onal  Grants  

Convertable  Co-­‐Equity  

“Kicker”  Soe-­‐Loans  Tax  Incen0ves  

Commercializa0on  Pipeline  

Pre-­‐Incuba0on  

2  –  3  years  

Managing  a  Healthy  Pipeline  

EIB  Regional  Forum  2010  “Smart  Growth  for  Turkey”  

The  “Valley  of  Death”  

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Role  Of  the  Public  

EIB  Regional  Forum  2010  “Smart  Growth  for  Turkey”  

   Push  research  establisment  to  commercialize  results  

   Tie  part  of  the  funding  to  commercializa0on  performance     Grant  researcher  ownership  exclusivity  for  a  limited  period    

   Pull  private  money  with  leverage  for  investor  risk  and  returns     Promote  best  prac0ce  in  investment  governance  and  ethics  

   Respect  independence  of  the  VC  management     Facilitate  access  to  the  research  lab  (promote  offices  for  transfer,  

encourage  u0liza0on  of  public  research  infrastructure)     Help  researchers  to  understand  the  market  and  the  process  

   Promote  channels  for  exit  (tax  incen0ves  for  exits  from/M&As  by  

large  companies  from/of  a  young  growth  company)  

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Photos  :    kind  courtesy  of  METUTECH  

Technology  Development  Founda0on  of  Turkey  

Cyberpark,  Cyberplaza  B  Blok  Kat:6  

Bilkent  06800  Ankara,  TURKEY  

www.Cgv.org.tr