Mükafat Asset Management TECHINVESTORS€¦ · Unit Price of the Fund Announcement Date,...

Mükafat Asset Management

TECHINVESTORSVenture Capital Investment Fund

Content

1. About Mükafat Asset Management

2. TechInvestors Venture Capital Investment Fund

3. About TUBITAK 1514 Venture Capital Funding Program

4. Our Venture Capital Investments

5. Targeted Investments

6. Appendices

1 About Mükafat Asset Management

About Us

Shareholders are; Aktif Bank (80%) and

Islamic Development Bank’s subsidiary Islamic Corporation for the Development of Private Sector (ICD, 20%)

All products and transactions are being approved by the Shariah Board according to the Interest-Free Finance Principles

Regulated and licensed by Capital Markets Board of Turkey (CMB)

Inventor of Turkey’s first Islamic overnight

money market fund

Products & Services

Shariah-Compliant Pension Funds

Discretionary PortfolioManagement

Shariah-Compliant Funds

Participation Funds

Venture Capital Investment Funds

Real Estate Investment Funds

TechInvestor VCIF (MBK)

Yaprak Renewable Energy VCIF (MYP)

Buket Venture Capital (MBB)

Karma VCIF

Short-Term Sukuk Participation Fund (MPF)

Sukuk Participation Fund (MPK)

Equity Participation Fund (MPS)

Aktif Participation (Dollar) Hedge Fund (MPD)

First Fuel Sector (MBG)

Atasehir Metropol (MPG)

We are managing the pension savings received by the pension companies on behalf of the participants, in accordance with the principles of interest-free financing under the supervision of Shariah advisory board. We depend on our deeply belief in faithful ownership.

We are actively manage individual and institutional savings on their behalf with a high level of personal services to underpin their investment objectives with our «Earn without Interest» approach.

2 TechInvestors VCIF

Fund Facts

Fund Investment Strategy

Fund is planning to be a partner/founder of venture public/private companies established in Turkey, with high growth potential and the ability to develop and product technology.

Fund Size 200 million TL

Fund Facts

Manager Mükafat Asset Management

Fund’s Investment Priorities TUBİTAK 1514 Venture Capital Funding Program*

Estimated # of Investments 4-6 investments per yearTotal 20 Investments

Maturity12 years with the liquidation period(Last 7 years is the liquidation period)

First Period June, 30 2019

Sold to Can be only sold to QIs

Distribution Channel Aktif Yatirim Bankasi A.S.

Currency TL

* TUBITAK: Scientific and Technological Research Council of TurkeyFor Details of the Program please see Chapter3

Fund Facts

Management Fee 2.50% p.a.

Performance Fee 20 % (Threshold: CPI)

Unit Price Announcement Daily indication

Subscription and Redemption Fee N/A

Custodian and Fund Service Aktif Yatirim Bankasi A.S.

Risk Management, Research Unit, Internal Control and Internal Audit System

Mükafat Asset Management

Auditor KPMG

Regulator Capital Markets Board of Turkey (CMB)

Fund Facts

* If there is no customer purchase or sale transaction in the relevant periods, Invested Venture Companies are not subject to valuation. ** After initial commitment and demand period, investors may give buy order every day, during the following 24-month *** Invested venture companies are subject to valuation and the fund unit price will be announced, in December**** If the specified dates are holidays, the next business day will be taken into account

* Period/Month** Demand Periods for

Buying Fund Units

*** Invested Venture

Companies Valuation

Period

Result of Invested Venture

Companies Valuation and

Unit Price of the Fund

Announcement Date,

****Buying

Demand Realization

First Period for Demand June 30, 209July 01, 2019

1 TLJuly 01, 2019

1. Valuation Period 1 July - 15 Dec 2019 16 Dec - 31 Dec 2019 Last day of Dec. First 5. day of Jan.

2. Valuation Period 16 Dec. - 15 June 2020 16 June-30 June 2020 Last day of June First 5. day of July

3. Valuation Period 16 June - 15 Dec 2020 16 Dec - 31 Dec 2020 Last day of Dec. First 5. day of Jan.

4. Valuation Period 16 Dec. - 15 June 2021 16 June-30 June 2021 Last day of June First 5. day of July

Fund Facts

Targeted Sectors - Priority

Smart TransportationRoad Safety, Autonomous / Electric Vehicles,

Unmanned Aerial Vehicles, Integrated Transportation Services, Clean

Transportation, Automotive, etc.

Energy and Clean TechnologiesEnergy, Renewable Energy, Energy

Efficiency, Waste-to-Energy, Intelligent Buildings, Intelligent Cities, Advanced

Materials and Chemistry, Energy Storage, Environment, etc.

Intelligent Production Systems(Digital Transformation in Industry)Machinery Manufacturing, Robotics,

Automation, Layered / Rapid Production, Industrial Informatics, Materials / Chemical

Technologies, etc.

Communication and Numerical TransformationMeasurement-Test-Analysis, Electronic Systems,

Decision Support Software, Communication, Education, Big Data, Virtual / Augmented Reality, Artificial Intelligence, Information Security, Cloud

Computing, Web Applications, Mobile Applications, Wearable Technologies, Audio /

Video / Text Processing, etc..

Health & WellnessMedication, Diagnostic and Analysis Kits,

Biomaterials, E-Health, Medical devices, etc.

Sustainable Agriculture and NutritionWater Efficiency, Seed, Smart and Clean

Agriculture, Functional Food, Food Safety, Aquaculture, Plant Health, Animal Health

and Welfare, etc.

Fund Facts

Investment Criteria

Right Team Right Product/Service Market Size

Market Entry Strategy Technology Exit Strategy

Scaling

Timing

Fund Facts

Investment Process

Application Face to faceInterview

Technical and Financial DD Deep Dive Investment

I II III IV V

Fund Management

Fund Manager (Securities)Kağan CandanSinan Soyalp

Investment Committee

Hulusi BerikTimuçin BilgörKağan CandanZeynep Pelin Atalay ÇidamOsman GencerYomi Kastro

Consultants Aydın Ersöz

Fund Management Team

A Management Team will be responsible for the different phases of all fund management processes from the selection of the venture company to the post-investment follow-up. This team will hold an Investment Roadmap meeting in every six month with participation of the representatives of all institutions.

Fund Management

Experience Transfer

The Experience Transfer core team consisting of representatives from the Fund Management Team and the organizations, will meet regularly every quarter.

Exemplary Activities of the Core Team: Participation to at least 3 Risk Analysis Assessment, Current Situation and Market Situation Analysis in one year. Participation to at least one Determination of the Terms of the Agreement Meeting in one year. Participation to Legal Processes. Attend to at least one mentor study per month. Attend at least once a year on a case study to determine possible investment exit scenarios at the initial investment stage. Participate as an observer to the Investment Committee meeting which will be held for investment decisions. Participate in activities for determination of valuation methods for at least 2 investments at the exit stage, etc.

3 TUBITAK 1514 - Venture CapitalFunding Program

TUBITAK 1514

TECHNOLOGY VENTURES

VENTURE CAPITAL

INVESTMENT FUNDS

TECHNOLOGY TRANSFER

OFFICES (TTO)

RESEARCH INFRASTRUCTURES

(AA)

TECHNOPARKS (TGB)

UNIVERSITIES

In collaboration with TUBITAK and Republic of Turkey Ministry of Treasury and Finance,

to support (via grants) Technology Transfer Offices(TTOs), Technoparks (TGBs) and Research Infrastructures(AAs) that invest in Venture Capital Funds

therefore, supporting early stage (SME size) technology ventures, that have the potential to add value to the Turkish economy, as they

commercialize their R&D and innovation based products and Technologies.

Purpose of the

PROGRAM

TUBITAK TREASURY

TUBITAK 1514

Objectives of the Program

Making a contribution to meet financing needs at the seed, start-up or development stage in Turkey by providing grant to Venture firms with financial needs

Making a contribution to the creation of a venture capital ecosystem by encouraging the establishment of new funds that will provide capital to Venture Firms and Fund Managers that will manage these Funds.

In order to ensure sustainability of the created ecosystem, enhancing the financial support that is specific to each stage of the Venture firms’ life cycle.

Empowering the Venture Capital Funds that support Venture Firms in Turkey and improving these processes with support from the government.

TUBITAK 1514

TUBİTAK**

MINISTRY of TREASURY and

FINANCE

EARLY STAGE

TECNOLOGY VENTURE 1

Venture Capital

Investment Fund*

TTO – TGB -AA

TTO – TGB -AA

TTO – TGB -AA

EARLY STAGE

TECNOLOGY VENTURE 2

EARLY STAGE

TECNOLOGY VENTURE 3...

OTHER INVESTORS

Funding Model

Institutions: TTO (Technology Transfer Offices), TGB (Technoparks) , AA (Research Infrastructures)

TUBITAK 1514

Application Process

Grant Call

•By TUBITAK

Application

•joint project proposal to TUBITAK by the institutions

Panel Evaluation

•By TUBITAK TUBITAK Approval

Grant Call

•By Treasury

Application

•proposal to the Treasury by the VCs Treasury Approval

Simultaneous Contracts with

•TUBITAK

•Treasury

TUBITAK 1514

Where We Are

TÜBİTAK announced the following numbers and estimations for the call: 10 applications were eligible to be supported:

10 applications by 23 institutions 334 ventures to be supported Total estimated investment: 980 million TL at first close; 1.8 billion TL at final close

TUBITAK 1514

Grant Conditions

Eligible Institutions; Technology Transfer Offices (TTOs) Technoparks (TGBs) Research Infrastructures (Aas)

TUBITAK Grant Budget: 100 million TL

Grant Amount per Institution: 50% of institution’ investment Min 2 million TL / max 20 million TL

Know-how Accumulation: It is expected that a representative from each institution takes part in 3 due diligence activities each year and also gain and share experience with the ecosystem on company valuation, legal matters and commercialization.

Capital Accumulation: After fund’s exit, TUBITAK’s grant amount is expected to accumulate within the institutions, to be used in the funding of early stage technology ventures in the future

TUBITAK 1514

TUBITAK Evaluation Criteria

Technical quality Relevance and quality of the processes developed by the institutions for the success of the project

Feasibility Eligibility of the institution Fund structure

Impact Institutional capacity building and sustainability

Ventures to be Supported

Max 7 years old at the time of initial investment by the VC SME status Early stage technology based ventures Must have received a R&D and/or innovation grant within the past 5 years by the institutions specified in the grant call

4 Our Venture Capital Investments

Our Venture Capital Investments

Pavo

Field of ActivityNew generation cash Register

Capital (million TL)16

Establishment2014

AuditorKPMG

EBITDA (million TL)8,8 *

Total Income (million TL)23,7 *

Gross Profit (million TL)10,6 *

Net Profit (million TL)9,1 *

215,000 cash registers licensed on the market since its

establishment.

23,000+ devices and 50,000+ food apps where 4 large

food company applications work

Integration applications made on 15.000 cash registers

High profitability rates provided by a core team of 15 people

Continuous revenues exceeding 50% of total turnover, creating recurring revenues

*2018/Q2

EcoPos

Become one of the leading players in the sector in 2 years from the establishment

Over 4,000 devices in 81 provinces

10.000+/mth call received in call center

A widespread service network that can serve across the country

Tested and proven solution set and software in national chains

Capital (million TL)6,8

Establishment2016

AuditorKPMG

Amount4.037





Field of ActivityRetail Payment System

*2018/Q2

NKolay

provides services across Turkey with 576 N Kolay Transaction

Centers and 4,183 kiosks

More than 165 agreements with institutions

First prize winner of EFMA’s(European Financial Management Association) «Physical Distribution» award

ROA growth from 15% (2015) to 23% (2017)

ROE growth from 36% (2015) to 183% (2017)


Establishment2014

AuditorKPMG

Transaction Number per year75 million





Field of ActivityPayment Services

BDDK Lisanslı Türkiye’nin en büyük ödeme kuruluşu olmayı

başarmıştır

*2018/Q2

UPT

BDDK Lisanslı Türkiye’nin en büyük ödeme kuruluşu olmayı

başarmıştır

Field of ActivityPayment Services


Establishment2014

AuditorKPMG





Money Transfer system serving at 10.000 points

In more than 200 countries

Number of transaction and profit growth doubled from 2016 to 2017

ROA growth from 13% (2016) to 28% (2018/Q2)

ROE growth from 17% (2015) to 40% (2018/Q2)

Türkiye’nin en fazla para transferi yapan ve gönderim/ödeme

ağına sahip yerli ödeme hizmetleri kuruluşu haline gelmiştir *2018/Q2

EKent

*2018/Q2

Executes 1 billion transactions, 2 million smart transportation

cards sales and 8 million smart card management in a year

High volume Electronic Fare Collection System of Turkey with 300 million magnetic ticketing in total.

500 million TL turnover per year is

the world's largest stadium transformation project including

infrastructure transformation in 51 stadiums

1.5 million of 3.7 million Passolig subscribers download the

mobile app

Physical ticket sales channels are 5,000 with N Kolay Kiosk

integration

Field of ActivitySmart City Solutions

Capital (million TL)143,5

Establishment2002

AuditorKPMG


Total Income (million TL)42 *


Net Profit (million TL)5 *

SigortaYeri

*2018/Q2

Turkey’s largest domestic broker with 4% market share (2017:2.4%) and 27% revenue growth

378% increase in the number of policies in the first 6 months of

2018

Turkey's most efficient insurance broker in terms of premiums and commissions per employee

2-fold growth in premium production in the first 6 months of 2018

Over 1 million corporate and individual customer


Establishment2013

AuditorKPMG

# of Transaction565.652




Net Profit (million TL)20 *

Field of ActivityInsurance Services

multiple distribution channel structure

DoubleClick

Doubleclick which was founded in 1996, was sold to Google in

2008 for $3.1 billion

Exited in 2006 during the initial phase of Google acquisition

Provided X 10 returns (USD bases) in 2 years to its Turkish investors

Value (million USD)70

Establishment1996

Investment2004

Exit2006

Exit Value (bn USD)0,8

MultiplierX10

Field of ActivityOnline ad agency

YemekSepeti

Yemeksepeti is the largest internet venture of Turkey

In 2009, exited from the European Founders Fund. Up to this point, it showed 300-fold growth. In 2015, yemeksepeti.com was sold to

Delivery Hero for USD 589 million

In 7 years, it offers x100 multiplier to its initial investors.

Value (million TL)0,2

Establishment2001

Investment

Exit2009

MultiplierX100

Exit Value (million USD)3

Field of Activitytakeout food ordering service

2000

Segmentify

Segmentify, is a platform that create a personalized shopping experience and increase sales by making real-time personalized product recommendations

Segmentify sold its shares to ACT Fund in 2018

In 4 years, it offers x180 multiplier to its investors

Value (million TL)0,2

Establishment2014

Investment Year2014

Exit Year2018

Exit Value (million Euro)6

Multiplier

Field of Activitypersonalized shopping platform

X 180

5 Targeted Venture Investments

Targeted Investments

Pipeline Process

Prospective Ventures Screening/Filter Deep Dive Offer / Agreement Due Diligence

I II III IV V VI

Signature Closing

4 proactive prospective ventures

35 prospective ventures w/reference

39 Ventures 8 Ventures 4 Ventures TBD TBD

TechInvestors VCIF, has evaluated a total of 39 venture company since July 2018. 35 venture company eliminated during screening/filter and deep dive analysis. Proposal studies of 4 venture investment have started.

Targeted Investments

Front Runners

Summary / Investment Advantages Ticket Size Targeted ShareSource of Pipeline

Status

Live online special training platform. The technology level and the potential for expansion are high.

5 million TL 10% InnovabanAgr. Preparation

Mass funding platform. Pioneering, innovative and powerful team advantage.

7 million TL 10% ITU Gate

Agr. Preparation

Offers solutions such as; RSP – eSIM, OTA, DSTK in telecom; HCE (Host Card Emulation), Mobile Pos in finance and artificialintelligence ChatBot. Strong with patented technologies. Target market is wide and competition is rare.

20 million TL 15% BUBA

Agr. Preparation

Making difference with its powerful know-how products and strong management team in the health Technologies sector.

30 million TL 10% Innovaban

Agr. Preparation

Targeted Investments – Examples:

Endoscope washing and disinfection device

Endoscope drying and storage cabinet

Endoscope leak tester

Endoscope image recording device

Functional, ethical and world-class production

Domestic sales / export balance

remote and on-site service

Thanks to the competitive structure, the possibility of expansion in a wide geography including Europe

Talented and visionary management team with sector experience

Positive EBITDA

MEDICAL DEVICE andSOFTWARE PRODUCTION


FACE RECOGNITIONSYSTEM

Among the Top 2 Companies in the Global Face Recognition Sector

99.8% detection and recognition accuracy rate

Applicable to all cameras

8 times faster than competitors thanks to special algorithm

Young and creative R & D team

Border Control

Time-based Control

Time Range Control

# of People Control Vehicle Control

Unattended People Control

Zone Control

Location and time-based

Control

Visitors Module


FACILITY MANAGEMENTSOFTWARE

Integrated service and facility management

Centralized help desk

The brand preferred by 22 city hospitals

Sustainable income through license sale and rental model

Talented and visionary management team with sector experience

customer service

management Personnel service

management

Live support

Service and facility

management

Service management

IT service management

professional chambers

management

Targeted Investments– Examples:

AGRICULTURAL FINANCING

Pozitif EBITDA

Financing for working capital needs at the time of purchase of inputs, to farmer

Affordable | Save up to 8% on each purchase

Honest | Transparent cost structure, no hidden fees

Fast | Transactions are completed in less than 4 minutes

Easy | The process is completed when the online process is at the dealer

Talented and visionary management team with high sector experience

Widespread and reliable dealer

network

58.531 sack manure and feed sale

Traditional and alternative credit scoring model

270.586 TLFarmers Savings

6 Appendices

Management

Kagan Candan General Manager/Fund Manager/Member Investment Committee

Mr. Candan graduated from the Department of Business Administration, Istanbul University. He holds Capital Market Activities Level III License, Derivative Instruments License and ISMA certificate. Mr. Candan having executive roles in Yapı Kredi Bank Treasury Department between years 1993 and 2006 and in Raymond James Securities Asset Management between years 1996 and 2009. Mr. Candan specialized in Treasury Management, Fund Management and Discrete Portfolio Management. After leaving the position of Department Head role in Aktif Bank Treasury, Candan started working as the General Manager of Mükafat Asset Management.

Sinan SoyalpFund Manager

Sinan Soyalp serves as Fund Manager at Mükafat Asset Management. Mr. Soyalp obtained his diploma in science field from Istanbul Robert College, his bachelor's degree from Department of Mathematics, Earlham College and his postgraduate diploma from Department of Quantitative Finance, Istanbul Bilgi University. He holds Capital Market Activities Level III License and Derivative Instruments License. He started his professional life at various positions as an intern at Ata Yatırım Ortaklığı, Economic Research Department of ING Bank and Strategic Planning Department of Sabancı Holding, respectively. Subsequently, he maintained his professional life as fund manager at SRT Capital. After starting to serve as analyst at Alkhair Portfoy in 2011, he was promoted to the position of portfolio manager in 2015 and maintained his position, under which he was in charge of Islamic mutual funds, until the mid-2016.

Management

Osman GencerMember Investment Committee

Osman Gencer serves as the Group Head of Private Equity Division of Aktif Bank since year 2014. Priorly Mr. Gencer had executive roles in the FinanceDepartments of Koç Group, Alarko Group, Kibar Group, Hitay Investment Group and Yapı Kredi Bank. In Altek Alarko Holding Mr. Gencer had primaryresponsibility in several projects such as international fundraising and feasibility of 164 MW Kırklareli Combined Cycle Power Plant, and 76 MW KârakuzHydroelectric Power Plant. Between years 2007-2011 he performed first as Group CFO and then as General Manager of Teknoser in the HitayInvestment group. Between years 2014 and 2017 Mr. Gencer worked as CEO two subsidiaries of Aktif Bank of Pavo Corp. and Echo InformationManagement. Mr. Gencer is currently Board Member of Pavo Corp. and Executive Committee Member of Echo Information Management.

Zeynep Pelin Atalay ÇidamMember Investment Committee / Board Member

Zeynep Pelin Atalay Çidam serves as Head of Corporate Finance Department at Aktif Bank, and Board Member at Mükafat Asset Management. She has more than 16 years experience in the fields of Corporate Finance and M&A. Before holding office at Aktif Bank, she had worked three years in Audit Department and ten years in Corporate Finance Department, accounting for a total of 13 years, at Deloitte. She performed due diligence procedures for many foreign and Turkish investors, and provided advisory services for sales and procurement activities at Deloitte. She worked in Corporate Finance Department for 6 months at Deloitte Melbourne office. Managing the acquisition and incorporation procedures of five companies at Aktif Bank, she also carried out Project financing processes for Aktif Bank's clients. Çidam had her Bachelors Degree at the Department of Economics (English), Istanbul University, and completed her master's degree in finance and investment at Exeter University, UK. She has an advanced level of English knowledge, and intermediate level of German. She completed the valuation courses under the program of American Society of Appraisers. Çidam is having CPA certificate.

Kagan Candan| [email protected] | +90 212 340 8305

Osman Gencer| [email protected] | +90 212 340 8784

Elif Pehlivanli|[email protected] |+90 212 340 8369

Mükafat Asset ManagementBuyukdere Cad. Astoria Kuleleri No:127 B Blok 1803 Esentepe 34394 Sisli/Istanbul

Tel: +90 212 376 3200Fax: +90 212 340 8036

[email protected]

http://www.mukafatportfoy.com.tr/

mailto:[email protected]

Mükafat Asset Management TECHINVESTORS€¦ · Unit Price of the Fund Announcement Date,...

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