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4
improve work safety, and relegate dangerous
jobs in dangerous places done by people to
machines. These are very important for the
competitiveness of our own companies. But
we can’t ignore other opportunities that arise
outside of agriculture and construction. If
there is a good idea somewhere, whatever the
sector, you shouldn’t ignore it. Sometimes a
new idea can create its own sector. So a busi-
ness that we as Tekfen do not even consider
today may open up a whole new set of oppor-
tunities for the company.
Selçuk Ergin:
The important thing
about corporate venture is to determine in
advance the strategic investments and op-
portunities of the company’s affiliates and
to be there, and perhaps even learn of pos-
sible opportunities beforehand. Today there
are big opportunities in construction and
agriculture. Tekfen Ventures can make a dif-
ference in these areas. Companies that don’t
digitize now will all go down. We base our
own structure on that.
Sinan Uzan:
There’s a quote from Dar-
win that’s my favourite: “It is not the stron-
gest of the species that survives, nor the most
intelligent that survives. It is the one that is
most adaptable to change.” That’s one of our
key ideas. We must be a company that’s not
the strongest but adaptable.
Do you seek out ventures or do they
find you?
Sinan Uzan:
A little of both. You need
to go out and find new ideas, but sometimes
they come to you, too. Tekfen is a name with
high recognition and a big player in its sectors
in Turkey, both of which make it attractive for
entrepreneurs. And we consider all kinds of
ideas. We try to develop close ties with centers
that support ventures such as MIT, NYU, and
Columbia. The investments that will make up
our portfolio will be chosen after close scru-
tiny using certain criteria, both in terms of
ideas and also their commercial potential.
Selçuk Ergin:
There are no rules or
guides about where a good idea or a venture
will come from. So you have to be every-
where. The idea you are looking for may be
in San Francisco or it may be on an island in
the middle of the ocean. That’s why we talk
with many people every day. We have been in
the field from day one, attending events and
meetings. We may invest in two or three ven-
tures, but for that we will talk with a thou-
sand people. If you think of the Holding as a
hive, we are the bees. We fly around, looking
for the sweetest flowers.
What is the attractive stage of a ven-
ture for you?
Sinan Uzan:
We are mostly interested in
companies that are at an early stage but al-
ready have a balance sheet and a team, com-
panies that are out of the garage, so to speak.
They should have picked up a certain level of
speed, proven the worth of their idea on the
market, looking for finance to attain further
growth. On the other hand, our aim is not
buying out good companies or seizing their
management through majority share. If the
company we will invest in is like an athlete
who has begun running, then we are the ones
providing them the nutrition they need. We
also mentor them, supporting them by show-
ing them the way, because Tekfen Construc-
tion has been in the business for 60 years,
and Toros for nearly 40. We want to use the
experience of our companies to show young
entrepreneurs the way.
How do you decide on an investment?
Sinan Uzan:
First, we closely examine
the company we will invest in, its business
model, its market share, and its plans for the
future. Then we make an internal evaluation.
Sometimes a great idea comes to us but it
may be too early for our portfolio or our in-
vestment principles. In that case, we remain
in touch and continue to follow that com-
pany. If the company’s business model aligns
with our priorities in the future, we may then
decide to invest in it.
When will Tekfen Ventures make its
first investment? Is there a date?
Sinan Uzan:
We’ve only just begun. The
company became active on December 1 last
year. We are still in the process of creating
our team. I think we will be able to announce
our first investments before the end of this
year.
ONE DAY IN THE LIFE OF A
VENTURE INVESTOR
Kris Kemény, head of Tekfen
Ventures’ New York office, says two
passions shape his professional
experience: technological innova-
tion and investment. “The thing that
excites me is overcoming obstacles
for innovation in big industries.”
Kemény describes his typical day at
Tekfen Ventures:
As a venture capitalist, my day
consists of meeting with entre-
preneurs, doing due diligence on
potential investment opportuni-
ties, reading research reports, and
speaking with other investors. My
schedule for last Wednesday may
give an idea of my life here:
I woke up early to catch my flight
to Boston (from NYC) because I had
a day full of meetings at MIT. En
route to La Guardia and as I went
through security at 7 a.m., Sinan
(Uzan) was catching me up on the
day’s events. I spent the short flight
working on a presentation for our
upcoming board meeting. I got in a
cab at Logan Airport and dialed into
my call with the CEO of a Silicon Val-
ley agriculture technology startup. I
arrived at MIT’s Cambridge campus
just in time for my lunch meeting
with the program directors for MIT’s
J-WAFS program where we dis-
cussed their new incubator program
and the various innovations hap-
pening across departments at MIT.
After that, we headed to their offices
where I met with four MIT startup
teams working on various cutting
edge innovations. We finished the fi-
nal pitch at 4 p.m., I took a cab back
to the airport and spent the ride on
the phone with another VC discuss-
ing potential investment opportuni-
ties. I caught up on emails during
the flight and headed back to the
office in New York. I had a call with a
business school student to discuss
an internship opportunity with us.
Shortly before 10 p.m., I went to
grab my tea, missed the handle and
spilled it all over myself. I realized it
was time to go home.