Revo CapitalIn the post-epidemic period in 2020, two investments from our new fund were announced, totaling $ 3.95 million. The new fund made its first investment in 2020 in CY Vision, which develops augmented reality technologies with the aim of reflecting digital gauges on car glass. His fund’s second investment was for Massive Bio, which accelerated cancer drug development with its AI-based technology. The company, which closed its second fund with € 53 million in March 2020, expects its fund to reach € 60 million in March 2021. Managing Partner of Revo Capital Cenk Bayrakdar Talk about it in the following way:
“Although the first half of 2020 was overshadowed by the pandemic, we saw investors and entrepreneurs quickly adapt to the new world order with the second half. Actors in the technology ecosystem shifted to processes such as remote working, video conferencing and remote investing. much faster compared to the world. We quickly adapt to the demand and want to spend 2021 making a lot of new investments, regardless of the course of the pandemic. “
Sectors in which the company stands out …
Revo Capital was established in 2013 in collaboration with the president of Tahincioğlu Holding Özca Tahincioğlu and Cenk Bayrakdar. Turkey invests in early stage technology companies in Eastern Europe and the Baltic region. The investment strategy involves supporting Series A companies that have developed their product and are already earning income, through capital transfers of between $ 1 million and $ 5 million to these companies on their way to becoming world leading companies. As a sector and business model, software companies, financial technologies, marketplaces, artificial intelligence and health technologies are the main focus of the new fund …
Bayrakdar said: “After we close our new fund in 2020 and two new investments we announced from this fund, 2021 will be a year in which all of his efforts are directed at new investments. He wants to increase the number to 15-20,” he said. . He says.
B2B software is in focus
Business-to-business software companies called “B2B software” are one of Revo Capital’s main targets. Cenk Bayrakdar, “The digitization of companies started in the 80s with software projects bought by corporate companies for years. With advances in hardware and software, especially the expansion of cloud computing, we switched to the ‘SaaS’ model as Software was only for the big efforts and budgets of corporate companies. Today, while all sectors are rapidly digitizing, software-as-a-service initiatives provide the digital transformation of many companies regardless of scale. We have seen one of the best examples of this in our country with our portfolio company Paraşüt, which digitizes the accounting processes of SMEs. Ş., we provide great added value to software companies that sell from business to business, guiding knowledge and the experience we have built in the fund over years, and by providing critical connections to our global environment in the world. business ndo “.
Another area in which the company excels is financial technologies … TransferGo, PayCore, Foriba, Paraşüt, Figopara, who believe in the development of financial technologies since the founding of the Fund, have made many investments in this field. Paraşüt and Foriba were among the companies that came out of these investments. Bayrakdar said: “Collaborating with initiatives in many areas of fintech over many years has increased our expertise in this field as a fund, strengthened Revo’s connections in the fintech ecosystem. While today’s fintech transformation is accelerating With the impact of the pandemic and changes in regulation, we are closely following the initiatives in this field and many new ones will be signing cooperation ”, he says.
How is a company evaluated?
Cenk Bayrakdar says that the importance of the health sector with the pandemic is emphasized once again and that it is another area of interest for the company. “We know that artificial intelligence technologies are increasingly used in drug development and clinical trials processes. Increasing global competition in data collection and processing will allow artificial intelligence technologies to be transferred to the healthcare field. in the coming years, thus creating personalized technology and highly effective treatments, “he adds.
Revo Capital basically takes the following steps to evaluate a company (although it may vary for each company):
- First meeting and preliminary analysis of team, product, market, competition, investment conditions
- Detailed product analysis and product demonstration.
- Meet and work with entrepreneurs and the team
- Q&A meetings attended by our executive team
- Analyze the market, competition and initiative as a result of detailed investigations
- Reference interviews with clients for product and company.
- Reference interviews with the founders
- Collect all the items and evaluate the investment by creating a report card
- Financial, tax and legal “due diligence” processes
- When evaluating any initiative, it is necessary to examine and evaluate the entrepreneur, the market, the competitors and the product in detail.
Cenk Bayrakdar states that Revo Capital primarily evaluates the entrepreneur and ends its words as follows:
For us it is very important that the entrepreneur reflects his ingenuity and determination both in his communication with us, in his past actions and in his future plans. Other important factors we evaluate are market size and market dynamics. We also try to answer the question of whether the current moment is right for the company by analyzing the size of the market and closely monitoring current technological developments in the market. Competition within the market is another main factor that we analyze. It is essential for us to assess whether there is room for a new player in the market and to understand the points of differentiation of the company from its competitors.
In addition to all this, as Revo Capital, we are an investment team with a high focus on the product. We believe that the product, which is the result of the effort of the entrepreneurial team in the investment process, is the best mirror of the entrepreneur and the quality of the product is an objective criterion that demonstrates the competence of the entrepreneurial team. Therefore, we analyze the product in detail in our relationship with initiatives. We want to make sure that the product offers a user experience several times better than similar products. Also, the unloading of the product to the field, sales and marketing are other important points. Taking into account the profile of the target customer, it is important to determine the appropriate channels to reach this profile and that the entrepreneurial team has facilitated or planned access to these channels.
The pandemic has changed the way the world works and created many new opportunities for investors and entrepreneurs. In 2020, with the effect of the pandemic in the software world, we saw that the software that digitizes and brings companies’ offline processes online and allows employees to work together remotely has come to the fore. We believe that this trend, which began in 2020, when digitization has become a necessity for businesses, not a luxury, will continue to attract attention in 2021. With the effect of the pandemic, almost entirely online shopping has created new opportunities in the field of electronic commerce. In 2020, we see traditional e-commerce players begin to replace web-based online shopping experiences like Amazon and Alibaba with more social and phone shopping like Pinduoduo. In 2021, we believe that initiatives that can generate personalized suggestions and provide a social shopping experience will take center stage through the use of artificial intelligence algorithms in online shopping.