Numerous startups in Türkiye embark on their journey every year, securing pre-seed and seed investments. However, at every stage, the significance of investor relations looms large.

Even in the face of failures, entrepreneurs emphasize the importance of cultivating honest and long-term relationships to find the right investor for their next venture. Additionally, it is crucial for entrepreneurs to establish connections with investors before the need for financial backing arises, maintaining the relationship with consistent updates and data.

Reliable team

Many investors prioritize encountering a reliable, focused and well-equipped team rather than a promising idea. Therefore, the division of roles within the team, alongside camaraderie during challenging times and managing growth, has become integral to teams' success. For most investors, backing a team launching their first venture is considered the inception of a relationship.

Timing is key

Avoid confronting investors only when the need arises. Establishing connections early in your journey and continually sharing information at every stage are prudent steps. Learn about the investor's previous investments, areas of interest and working principles. Utilize the privilege of choosing your investor wisely. Pay attention to the references provided by your investor. Transparency and consistency in updating your investor at every step are imperative.

Realistic goals

Muhammed Özhan, the general manager of Türk Telekom Ventures, a venture capital arm of one of Türkiye’s leading telecommunications and technology companies, Türk Telekom, emphasizes that entrepreneurs preparing for investor meetings must first excellently articulate the benefits of the developed application, software or product.

Özhan also stresses the importance of presenting the problem solution in its simplest form.

"Entrepreneurs should present the estimated market with accurate and reliable references, but presenting it with solid assumptions will increase credibility. Classical competitor comparison slides have started to become very meaningless. If you don't firmly believe it's realistic, never use it just for the sake of doing it. A well-prepared roadmap is crucial. What they will accomplish at each stage should be clearly explained. In some cases, it can even be meaningful to include an exit strategy," he explained.

From start to finish, entrepreneurs must be meticulous with every promise they make, ensuring the credibility of their concise idea, according to Özhan.

"Realistic figures, summarizing objectives at each stage and detailing the potential exit are far more persuasive. Ultimately, the focal point for everyone lies in who will execute this. For investors, the strength of the team often outweighs the strength of the business," says Özhan.

"A strong business can fail with a weak team, but a weak business can be much more successful with a strong team."

"Therefore, emphasizing the team’s capability to address queries together bolsters investor confidence," he added.

Customized solutions

The Workup entrepreneurship acceleration program by Işbank, Türkiye’s largest private lender, provides tailored mentorship services to startups, preparing them for investor presentations. It demands entrepreneurs to articulate who solves whose problem in which market precisely.

Subsequently, it’s imperative to concisely outline why the entrepreneur and the team are inclined to solve the problem. Additionally, it's crucial to highlight the product or solution's distinctiveness and superiority over competitors.

Reliable references play a vital role in accurate market analysis from the outset. The analysis of revenue derived from customers or the strategy for market entry since the inception of the venture takes precedence. Furthermore, elucidating the team's objectives is of great importance. Establishing realistic business connections and ensuring the investment amount aligns with the startup’s needs are crucial in both the initial and growth stages.

In essence, certain investors’ networks of relationships might hold more significance rather than the financing itself.

Türk Telekom spearheads support for startups

In a bid to propel innovative ideas from various sectors such as biotech, education, artificial intelligence, image processing and big data solutions toward global recognition, Türk Telekom, one of Türkiye’s leading telecommunications and technology companies, has long been a stalwart supporter of the entrepreneurship ecosystem.

Since the inception of Türkiye’s pioneering corporate startup acceleration program, Pilot, in 2013, Türk Telekom has provided cash support amounting to TL 32 million to 111 startups, playing a crucial role in both the internationalization of local ideas and the accumulation of investments surpassing $35 million.

Elevating its support for startups to new heights, the company established Türk Telekom Ventures in 2018. The total value of the 21 startups the venture capital company has invested in has reached $190 million.

Contributions to technology

Muhammed Özhan, the general manager of TT Ventures, says entrepreneurship is ingrained in the spirit of Türk Telekom.

"We not only introduce Türkiye to innovative technologies but also transcend the role of a telecommunications company. By supporting local ideas, we contribute to economic and technological advancement, pave the way for our startups to go global and add value to our country," said Özhan.

Pioneering Türkiye’s digital transformation, Türk Telekom has supported entrepreneurs since 2013 to contribute to the country’s vision of producing and exporting tomorrow's technologies.

Through the Pilot program, Türk Telekom guides the growth of innovative ideas by transferring technological expertise. Türk Also accelerates startups by providing cash support and numerous opportunities. With Pilot, Türk Telekom has provided TL 32 million in cash support to 111 startups, facilitating their attraction of investments exceeding $35 million.

By establishing Türk Telekom Ventures in 2018 and elevating its support to the entrepreneurship ecosystem, the company plays a locomotive role in carrying innovative ideas into the future. Since 2018, TT Ventures, with its office in Silicon Valley, has supported local startups to go global. Türk Telekom Ventures has also facilitated entrepreneurs' education through a specially designed program at Stanford University.

Substantial support

Özhan says entrepreneurship is one of the most important values of their corporate culture.

"As a company that has laid milestones in Türkiye’s communication history, we know that entrepreneurship is the key to economic and technological progress and act with this awareness. With Türkiye’s first corporate startup acceleration program, Pilot, since 2013, we have provided TL 32 million ($988,408.00) in cash support to 111 startups, and we have also provided the transfer of invaluable technological expertise of Türk Telekom," he noted.

Özhan stated they support the entrepreneurship ecosystem in many fields, from biotech, education and artificial intelligence to image processing and big data solutions.

"With Türk Telekom Ventures, since 2018, we invest in startups that offer innovative ideas in the field of future-shaping technologies. The total portfolio value of the startups we have invested in with Türk Telekom Ventures has reached $190 million. We are determined to carry innovative ideas to the future by supporting the local ecosystem."

Shark Guitars launches production investment

Shark Guitars, a pioneering Turkish guitar venture, is embarking on a new investment to launch production in the autumn of 2024, initially producing 100 guitars monthly.

This capacity is projected to surge to 500 guitars per month in 2025, a figure expected to double a year later. With six exclusive patents under its belt, Shark Guitars is recognized among the most advanced electric guitar manufacturers worldwide.

"We will inaugurate our factory with a monthly capacity of 100 guitars in the fall. Subsequently, in the second phase, by 2025, we will increase our capacity to 500 guitars per month. Concurrently, we are conducting feasibility studies for the third phase, slated to commence in 2026, with a capacity of 1,000 guitars per month," said Cem Köksal, co-founder of Shark Guitars.

"Our factory, situated in the first part of the Antalya Organized Industrial Zone, will expand its capacity within a closed area of 15,000 square meters."

Pioneering local production

Köksal highlighted that the only component they import for their guitars is some exotic wood not grown in Türkiye.

"In this regard, we can say our production is made with 95% domestic products. Our goal is to generate revenue by exporting to the world, thereby injecting foreign currency into Türkiye and reducing the outflow of foreign currency from Türkiye for electric guitars. Our aim is to establish Shark Instruments as a globally recognized elite musical instrument brand within five years," he noted.

Future endeavors

Detailing Shark Guitars' goals and research and development endeavors, Köksal said their target markets will encompass North America, Europe and the Far East.

"Guitar sales surged by 15% between 2019 and 2020. While the surge was fueled by newcomers purchasing acoustic guitars, top brands like Fender and major retailers like Guitar Center and Sweetwater achieved record sales. At Shark Guitars, we will continue to allocate a significant portion of our revenues to R&D activities. Currently, we have six patents, but we have ideas for over ten patents," he noted.

"Increasing our product variety is among our short-term goals. Bass guitars and acoustic guitars are next in line, and Shark Electronics is also among our medium-term plans."

Innovation with six patents

Shark Guitars was established in 2018 to produce the world's most advanced electric guitars and position itself among the top prestige brands in the market.

It amalgamated its innovations in electric guitars under six main patents after a five-year R&D effort.

The R&D process concluded with the production of 20 prototypes. These six patents revolutionized the design and functionality of the guitar, transforming Shark Guitars into a true "Guitar v2.0."

That term is linked to Shark Guitars being a technology product that directly addresses the needs and expectations of guitarists. Each patent aims to provide users with higher performance and flexibility. Innovations such as modular structure, ease of maintenance and use, portability, customizability and integrated sound effects offer musicians unprecedented freedom and control.

Another innovation by Shark Guitars is the "Shark 3D Guitar Designer." Accessible via web browsers, this tool (sharkguitars.com/designer) enables users to customize and purchase their guitars from scratch. Musicians can tailor every detail of their guitar, from body and neck profile and color options to hardware, according to their needs and preferences. This user-friendly platform enables musicians to create unique instruments tailored to their needs.