Presentation by Mr. Baybars Altuntas, President, Business Angel Association, Turkey and entrepreneur at the Launch of the SME Policy Index for the Western Balkans and Turkey 2016. 28 April 2016

2. What did the SMEs and startups of Turkey
need?
96% of the world economy is driven by entrepreneurs, start-ups and SMEs. These small- and medium-sized enterprises are the main drivers of economic stability. They recruit more
than 60% of the entire working population of the world. In order for them to contribute more to the economies of their countries, they need to meet with new and financial
instruments quickly. Unfortunately, after the global economic crisis, SMEs, entrepreneurs, and start-ups were unable to access finance as easily as before.
The development of new financial instruments such as crowd-funding, angel investment, acceleration programmes and co-investment funds, and the easing of access to finance for
SMEs, entrepreneurs and start-ups therefore play a vital role in economic development.
On the other hand, SMEs, entrepreneurs and start-ups should also be supported by smart public money, so the development of new policies to covert public money to smart money
plays an important role in creating an entrepreneur-friendly environment. Developing tax incentives, co-investing with angel investors, regulating crowd-funding, providing incentives
for companies based in technoparks, recognising qualified investors, introducing new, innovative financial instruments, providing capacity building programmes, recognising and
awarding success, connecting SMEs, entrepreneurs and start-ups with global investment markets and developing new incubation and acceleration programmes are all vitally
important factors in the development of an efficient early-stage investment market in Qatar.
• developing tax incentives
• co-investing with angel investors
• regulating crowd-funding
• providing incentives for companies based in technoparks
• recognising qualified investors
• introducing new, innovative financial instruments
• providing capacity building programmes,
• recognising and awarding the success
• connecting SMEs, entrepreneurs and start-ups with the global investment markets

3. Two things:
More finance for startups and
SMEs
More angel investors

4. Who could be a fast game-changer?
Policy makers

5. How did we convince policy makers?
We raised 2 questions:
Policy makers should choose one of them:
Supporting Entrepreneurs and SMEs directly
OR
Supporting the supporters of Entrepreneurs and SMEs
What is the practical way to convert public money to smart money?

6. What could be the innovative non-bank financial
instruments for the early stage investment market
in Turkey?
Business Angels
Accelerators
Crowdfunding platforms

7. Which one is the best source of finance for
startups and SMEs?
a) Bootstrapping
b) Crowdfunders
c) VCs
d) Banks
e) Incubators
f) Accelerators
g) Stock exchanges
h) Business Angels
i) Public grants
j) Business Plan Competitions
k) Co-investment funds

8. Business Angels are main drivers of
converting public money to smart money
Government understood clearly that supporting supporters of
entrepreneurs and SMEs will ease the way to convert public money to
smart money. And Business angels are the main financial sources to
secure this process.
So, Turkey released Angel Investment Law in 2013
http://www.treasury.gov.tr/en-US/Pages/Business-Angel-Scheme?nm=1041

9. REGULATION ON BUSINESS ANGELS
PART ONE
Purpose, Scope, Legal Basis and Definitions
Purpose and scope
Article 1–(1) The purpose of this regulation is to determine procedures and principles regarding the support for Business
Angel Capital, a financial instrument for start-ups and early stage enterprises experiencing difficulties in access to finance due
to the high risk they have; monitoring, supervision and termination of activities of Business Angels and individuals,
institutions and organizations subjected to the Law on the Structures and Duties of the Undersecretariat of Treasury no. 4059
additional Clause 5, dated December 9, 1994.
Legal Basis
Article 2–(1) This regulation is prepared on the basis of Additional Clause 5 of the
Law on Structure and Duties of the Undersecretariat of Treasury.
Definitions and abbreviations
Article 3–(1) In this Regulation, the following expressions have the below meanings:

10. We wanted to include global angel investors
too
• Because accredited Business angels need networking, mentorship and
know-how for succesful exits
• So, Istanbul Stock Exchange created a private market to accelerate the
involvement of foreign angel investors
• Co-investment Law

11. STEP 1
Defining and connecting the main players
of the early-stage entrepreneurship and SME ecosystem in the country and setting up an
executive board with the participation of all stakeholders to implement the programme as
a whole. Discussing and giving a final shape to the country programme to be implemented.
• Chamber of Commerce
• Stock Exchange
• Development Bank
• Science & Technology Park
• Technoparks
• Business Angel Network(s) – if there is
• Treasurey Department of the Government

12. STEP 2
Introducing innovative financial instruments of the global early-stage
investment markets
A workshop for the leaders or representatives of the Early Stage Investment Market Players.
This introductory meeting aims to identify volunteers for participating as a founding
member of the Business Angels Network (BAN) in the country.

13. STEP 3
Meeting with Potential Business Angels
Each stakeholder will identify potential angel investors from their own network.
The proposed potential angel investors will be invited to the next conference. In
this meeting, participants will gain an understanding of the main principles of
angel investment, what is happening in Europe and the world, and the
advantages of becoming a member of a business angel network.

14. STEP 4
Creating an online platform to accept business plans of startup and
SMEs who need finance to startup or scale up their businesses.
After reviewing applications, they will be invited to make pitching to business
angel network members.

15. STEP 5
Making recognise BAN officially and connecting it with the global early-
stage investment market
BAN will complete an application for EBAN, and EBAN will recognise BAN as the
global voice of the early-stage investment market of the country in the first
board meeting after recognition. Then EBAN will propose BAN to GBAN as the
country leader. GBAN will officially recognise QBAN. GBAN, based in
Washington, DC, is the umbrella structure of the world angel investment
ecosystem. GBAN recognises only one entity from each country as the
representative of the early-stage investment ecosystem of the country.

16. STEP 6
TBAA Capacity Building Trainings and Master-classes:
• Main Programme 1: For Potential Business Angels / 2 Days
• Main Programme 2: How to Set-Up and Run a Business Angel Network – BAN
/ 2 Days
• Main Programme 3: Investment Readiness for Entrepreneurs, Start-ups and
SMEs / 2 Days

17. TBAA Master-class for Policymakers:
Policy building to ease access to smart finance
Case Study: An applied study with Turkey as a sample country, with the participation of guest speakers from the Treasury Department
of the Government of Turkey who developed the regulations in Turkey. This masterclass will give participants an opportunity to learn
first-hand about the barriers and obstacles in the implementation of laws.
Participants will hear first-hand more about innovative policies for governments from Baybars Altuntas. US President Obama granted
him a personal audience at the White House to hear his game-changer ideas for governments. He will tell you the main idea behind
the governmental policies he proposed, emphasising the importance of converting public money to smart money. He will explain why
supporting entrepreneurs and SMEs directly (or supporting the supporters of start-ups and SMES) should be a main priority and why
governments should foster the concept of ‘investing in the right team’.
• Angel investment law, Economy Ministry of Turkey
• Crowd-funding law, Economy Ministry of Turkey
• Co-investment law, Economy Ministry of Turkey
• Technoparks law, Science & Technology Ministry of Turkey
• Supporting entrepreneurs and SMEs directly or supporting the supporters of start-ups and SMES
• Converting public money to smart money
• Investing in the right team

18. TBAA Master-class:
Creating the best co-investment structure for the
country
Case Study: An applied study on different structures applied in different countries. Pros and
cons of the early-stage investment co-investment fund structures in different scenarios
such as business angel–public fund, public fund–EIF, angel syndication, VC–angels, VC–
public fund–angels.
• Technical definitions of different types of co-investment funds
• Reasons to create a business angel involved in co-investment funds
• Added values for public entities
• How public entities differentiate the co-investment initiatives
• Main business angel co-investment funds in Europe
• Structures of these co-investment funds
• Public due diligence – investment decision – term sheets
• How public money comes to the game

19. TBAA Master-class for Bank Executives:
Creating an angel investors club within the bank
for private banking customers
Case Study: An angel investment scheme is an innovative financial instrument for
banks. The only bank in the world to have created an angel investors platform for
its private banking clients is BNP Paribas – TEB (Turkish Economy Bank). In this
masterclass, the head of the TEB Angel Investor Platform will give participants a
roadmap to create such an innovative product in a bank. You will hear about the
expectations of the bank administration for this product and how the bank benefits
from the initiative.
• Setting up incubation centres as a bank
• Setting up an angel investors club
• Matching club members with incubated start-ups
• Setting up a side-car fund
• Managing the side-car fund

20. TBAA Master-class for Stock Exchange Executives:
Creating a private market for business angels,
start-ups and SMEs under the stock exchange
This masterclass will involve a case study from the Istanbul Stock Exchange. The director of the Istanbul Stock Exchange will share
important insights from the Turkish capital markets for initiating and running such a market in your country. You will find interesting
strategies for using the stock exchange as a leveraging body to increase the market size of Qatar’s early-stage investment by
converting the stock exchange into a platform where foreign investors can find a secure environment to invest in start-ups,
entrepreneurs, and SMEs in your country.
• Why stock exchanges today give importance to SMEs and entrepreneurs more than ever
• How the Nasdaq Private Market works for SMEs and entrepreneurs
• How the ELITE Programme of the London Stock Exchange Group serves the needs of SMEs and entrepreneurs
• How the Istanbul Stock Exchange Private Market works for business angels and start-ups
• Whether there is a need for the SEC of a country to secure the private market
• Obstacles in developing such a market
• How this market can be used to list global angel investors and leverage the size of the early-stage investment market by attracting foreign investors
• Benefits of creating a private market or start-up market under the stock exchange for:
• o the stock exchange itself
• o the country’s overall economy
• o the early-stage investment market of the country

21. STEP 7
EBAN – ICC International Excellence Awards for your country
Gala Dinner
EBAN and ICC International will seek to promote and nurture start-ups, angels, and a dynamic business community in Qatar. From
business angels to policymakers to academics, the awards will salute those who stand out in imagining, discussing, and shaping the
future of an entrepreneurial Qatar. Given the diverse challenges the world is facing in the twenty-first century, it is important to
recognise that entrepreneurship can have a major impact on our future, offering new ways to increase economic opportunities and to
foster social justice.
EBAN and ICC International aim to contribute to that impact by driving positive changes that will facilitate entrepreneurship. Fostering
entrepreneurship whose effects can be felt in both economic and social arenas is a hallmark of EBAN and ICC.Excellence Awards
recognise notable activities in these fields and salute outstanding contributors to entrepreneurship and to the angel investment
ecosystems in the region.
• Call for nominations
• Setting up a international jury
• Assessing applications
• Presentation of awards

22. THANK YOU
Baybars Altuntas
Chair, TBAA - Turkish Trade
Association for Business
Angels and Early Stage
Investment Market
baltuntas@deulcom.com.tr
+90 532 236 66 82
www.melekyatirimcilardernegi.org