Turkey’s StartersHub Unites Accelerator & Fund For Early-Stage Tech Startups

How would you describe StartersHub in 50 or fewer words?

StartersHub was founded as a 8.3M Euro fund for early-stage tech startups in 2015. We are based in Istanbul, Turkey and running global venture building programs. We provide seed investment of up to 210K Euro, highly experienced mentors, trainings, business connections and office space in Istanbul‘s business district for our portfolio companies. Additional to Startupbootcamp Istanbul and Game Garage, this year we launched a program called StartersHub XO which focused on IoT, Big Data, and FinTech in its first year.

What is your role at StartersHub and how did you get involved?

I’m the director of StartersHub XO Venture Building Program. From designing the program structure to following investments after the program, I’m responsible end-to-end. During the last 6-7 years, I have been working with tech startups in various roles such as managing a corporate accelerator, running intrapreneurship programs, and running my own startup, respectively.

You mentioned that StartersHub XO focused on IoT, Big Data & FinTech. What innovations are you looking for specifically?

We chose these enabling technologies as our focus areas for 2017. We now investigate different technologies or industries for next year, such as AI, HealthTech etc. Technological novelties are necessary for us to select program startups. I can briefly describe what we look for by saying “Multidisciplinary solutions which solve critical problems that occur frequently”. Considering our partnership strategy, we have also industrial focus areas. Consumer Electronics, Health, Smart Cities, InsurTech, Payment Systems, Capital Markets, to name a few.

Tell us a bit more about your programs – what can startups expect and what do you ask for in return?

This year we conducted Startupbootcamp Istanbul and StartersHub XO. Next in the row is Game Garage, which aims at accelerating gaming startups. StartersHub XO, our most recent program, provides 16.8K Euro seed funding, a globally engaged mentor network of executives and influencers, private workshops, co-working space, and our partners’ in-kind contributions for selected startups. During this 6-month long global program, we aim to accelerate the growth of startups and leverage their success. Our successful alumni have a chance to raise follow-on investment up to 210K € from StartersHub. For all the support we provide, we take 6% of a startup’s shares.

You guarantee investment upon the completion of the program. How does this process work? What happens in case a startup doesn’t live up to your expectations?

We follow the progress of our program startups through their key growth metrics. Every month, StartersHub’s investment committee and the founders meet over past and next metrics and assess the strategy. Thus, we are so confident to guarantee investment, because we are already involved enough in their businesses. We work with a very simple formula – if a startup doesn’t achieve its monthly goals, they don’t continue the program and if a startup achieves its monthly growth goals, it deserves investment.

With the insane growth of startup organizations joining the ecosystem – how do you make sure you stand out?

We are both an accelerator and a fund. This is a rare combination. Unlike many other accelerators, we have a fund to invest in our startups and unlike many investors, we run programs to provide more comprehensive supports. As you know, it takes time for startups to find seed investment. Through our close relationships with them, we can make a very quick decision. Only one week after our last program ended, we declared our investment amounts and company valuations to all our 9 startups. This rapid process helps them leverage themselves as quickly as possible. One other important asset we have is our partnership deals. For every focus area, we have at least two big corporations to support startups.

As a Turkish startup organization, in what ways has the ecosystem changed in the last year and what do you wish for in improving it?

Frankly speaking, this year I enjoyed my job more when I saw pitches or met with the entrepreneurs. Because the quality and diversity of startups have increased.

One other important progress is that more corporations are willing to support startups, thus enable their assets voluntarily. However, the investment decisions should be made quicker and there should be more active investors in order to improve this ecosystem. One way of doing this is to transfer money from traditional businesses to technology-based businesses.

What advice would you give entrepreneurs for their startup?

Don’t hesitate to ask for help.

 

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