BORSA İSTANBUL Dr. Recep Bildik Director of Business Development and Research Recep.bildik@borsaistanbul.com 1
Kaynak: Invest Eurpoe Report 2016 1
Reference: Starups watch, 2017 1
The total amount of equity invested in European companies in 2016 remained stable at 52.5bn compared with 2015. The number of companies receiving investment decreased by 8% to around 5,900, 83% of which are SMEs. Over a third of the total amount invested in European companies were cross-border investments. Venture capital investment increased by 2% to 4.3bn compared with 2015. Over 3,000 companies received investment, a reduction of 7%, which indicates a trend towards larger financing rounds. Kaynak: https://www.investeurope.eu/research/activity-data/annual-activity-statistics/investments-(2016)/ 6
Investment to the total of 5.899 companies, of which 3.124 are startups (52% of total), 29% growth stage, 13 % seed, 10 % later-stage companies. Reference: https://www.investeurope.eu/research/activity-data/annual-activity-statistics/investments-(2016)/ 6
Distribution of funds invested: 2 billion euros to Startups, 1.8 billion euros to Later-stage companies, 0.4 billion euros to Seed level startups, approximately 10 billion euros to Growth stage companies. Kaynak: https://www.investeurope.eu/research/activity-data/annual-activity-statistics/investments-(2016)/ 6
Kaynak: https://www.investeurope.eu/research/activity-data/annual-activity-statistics/investments-(2016)/ 6
Particularly, the size of 0.5-1 Million Euros and 1-5 Million Euros early stage investments are increasing. Reference: https://blog.dealroom.co/wp-content/uploads/2017/04/2017-european-venture-capital-report.pdf 4
EBAN: 8.6 milyar euros investment to early stage companies 71% by BANs, 24% by early stage VCs, % 5 by crowdfunding Investment: per company 185.000 euros, per angel investor 20.000 euro, 470+ angel network. Reference: EBAN Report 2016 1
Global Crowdfunding Market More than 500 crowdfunding platforms globally provides approximately $ 2 M per day to the entrepreneurs. US, UK, Canada, Germany, France, Australia, Italy, Holland, and Spain are leading countries in crowdfunding.
Development in Global Crowdfunding Market Crowdunding volume in U.S reached to $ 34 Billion (of which $ 25 Billion is from P2P lending based). Kaynak: Massolution/Crowdsourcing.org 2015CF Crowdfunding Industry Report
Types of Crowdfunding Lending based crowdfunding has been growing at a faster pace than others.
Kaynak: Invest Europe Report 2016 5
Fintech, enterprise software, health, transportation and security are the major areas attracted investment. Kaynak: https://blog.dealroom.co/wp-content/uploads/2017/04/2017-european-venture-capital-report.pdf 5
2016 - Incremental amount raised during the year - % of amount Kaynak: Invest Europe Report 2016 Government agencies, corporates, high-networth individuals, funds of funds and family offices are main sources of capital in venture capital investments 5
Total of exit from 3500 investments at the value of 38.5 Billion Euros 2.4 Billion Euros from 1300 VC investments 29% of total through Sale to another Fund, 28% of total through Trade Sale, 17% of total through IPO Kaynak: Invest Europe Report 2016 5
Reference: Invest Europe Report 2016 5
Kaynak: Invest Europe Report 2016 5
Kaynak: Startups watch, 2017 VC Invesments are growing in Turkey but still low 11
Kaynak: Startups watch, 2017 13
Borsa Istanbul: Markets Private Market P R I V A T E M A R K E T Borsa Istanbul Private Market is a membership based web platform that brings companies and investors together to provide capital and liquidity through purchase and sale of shares without going to public. Matchmaking platform for only for privately-held Startups and SMEs and qualified investors such as VC/PE funds
Borsa İstanbul Private Market A private web and membership-based marketplace for o o Start-up and Early-stage companies Late-stage growing SMEs and Pre-IPO companies Meeting with qualified and angel investors Access to seed capital and follow-up capital Access to strategic partnerhips Access to know how, mentorship o Angel and Qualified Investors Meeting with growing companies from different sectors Finding new profitable investment opportunities Exit from their existing investments
Borsa İstanbul Private Market Total 391 members within 2 years 65% Startups: Median amount of investment sought bystart-ups is 1 milliontl 35% Rising Companies: Average sales is 56M and EBITDA is around 5M TL 109 Qualified Investors such as VCs, Angels, Corporates More than 11 million dollars were raised in 13 deals in 32 months.
Venture Capital Investment Fund (VCIF) Portfolio Certified Venture Capital Mutual Funds 80% Venture Capital Investment Ak Portföy Yönetimi A.Ş. Birinci Girişim Sermayesi Yatırım Fonu Legal Aspect Limited legal entity with title deed registration procedures 20% Others (equity, bond, sukuk, deposit vb.) Custodian Banks and Investment Institutions Actus Portföy Yönetimi A.Ş. Gaziantep Enteğre Sağlık Kampüsü PPP Girişim Ser.Yat.Fonu Actus Portföy Yönetimi A.Ş. Logo Ventures Girişim Sermayesi Yatırım Fonu Arz Gayrimenkul Ve Girişim Sermayesi Portföy Yönetimi A.Ş. Birinci Girişim Sermayesi Yatırım Fonu Gedik Portföy Yönetimi A.Ş. Birinci Girişim Sermayesi Yatırım Fonu Valuation At the end of each year VCIF Fund Participants Qualified Investors İstanbul Portföy Yönetimi A.Ş. Bosphorist Girişim Sermayesi Yatırım Fonu İş Portföy Yönetimi A.Ş. Altyapı Girişim Sermayesi Yatırım Fonu KT Portföy Yönetimi A.Ş. Teknogirişim Girişim Sermayesi Yatırım Fonu KT Portföy Yönetimi A.Ş. Green Power Enerji Girişim Sermayesi Yatırım Fonu Founding/Managi ng Company Portfolio Man. Companies Exit Min. Potfolio Size 5 million TL Troya Portföy Yönetimi A.Ş. Yenilebilir Enerji Birinci Girişim Sermayesi Yatırım Fonu Mükafat Portföy Yönetimi A.Ş. Birinci KOBİ Girişim Sermayesi Yatırım Fonu Mükafat Portföy Yönetimi A.Ş. Buket Girişim Sermayesi Yatırım Fonu IPO, Private Placement, Sale Back As of end of 2017, there are 12 venture capital investment funds (active) in Turkey. Principles required for the venture capital funds to be traded in the equity market at Borsa Istanbul were published on 22.09.2017. 5
Borsa İstanbul: A fully integrated business model LISTINGS Primary cash markets Domestic and foreign IPOs/SPOs Debt securities (e.g., corporate bonds, sukuk) 402 listed companies USD 233 bn market capitalization Borsa İstanbul offers a fully integrated business model capturing entire value chain: Borsa İstanbul Exchange Group is a one-stop shop for listing, trading, market data, clearing, settlement and custody. BORSA İSTANBUL MARKETS Equity Market Debt Securities Market Derivatives Market Precious Metals Diamond Market CLEARING & SETTLEMENT Takas İstanbul (Istanbul Settlement and Custody Bank) CCP of Turkish Capital Markets Borsa İstanbul s share: 63.8% CUSTODY Merkezi Kayıt İstanbul (Central Securities Depository) Borsa İstanbul s share: 30.1% Takas İstanbul s share: 64.9% MARKET DATA & INDICES 346k subscriptions for market data products 381 index types (equity, debt securities, risk-control, leveraged and short indices) 25
High trading volume, strong liquidity Equity Market Trading Volume (Billion TL) Equities, pre-emptive rights, exchange traded funds, warrants and certificates 16% CAGR (2013-2017) Debt Securities Market Trading Volume (Billion TL) Public and private sector debt securities, Eurobond, sukuk, repo, liquidity certificates -10% CAGR (2013-2017) 817 873 1.026 1.014 1.468 6.898 7.645 10.267 11.367 4.564 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Derivatives Market Trading Volume (Billion TL) Precious Metals and Diamonds Market Trading Volume (Billion TL) Options contracts on stocks, index and currency; futures contracts on stocks, index, currency, electricity, commodities, precious metals, foreign indices, metals, overnight repo, and ETFs 20% CAGR (2013-2017) 868 Gold, silver, palladium, platinum, precious stones trading Gold and silver custody services 16% CAGR (2013-2017) 68 417 436 575 607 38 22 26 31 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Source: Borsa İstanbul 26
High trading volume, strong liquidity Value of Equity Trading (EOB, Bn USD, 2016) Value of Bond Trading (EOB, Bn USD, 2016) NYSE Korea Exchange BATS Global M. Shanghai SE Shenzhen SE Nasdaq - US Shanghai SE Japan Exch Group BATS Chi-x Europe LSE Group Euronext Korea Exch Hong Kong Exch. 23rd in the world LSE Group Tel-Aviv SE BME Spanish Exch BV de Colombia Borsa Istanbul BC de Santiago Moscow Exch 117 World s 7th largest debt securities market Deutsche Boerse TMX Group SIX Swiss Exch Australian SE Nasdaq Nordic Exch NSE of India 7th among emerging markets in share traded value BC Buenos Aires Turnover Velocity (%, 2017 October) Taipei Exch Source: WFE, Annual Statistics Guide 2016 BME Spanish Exch Shenzhen SE BM&FBOVESPA Taiwan SE Johannesburg SE The SE of Thailand Borsa Istanbul Saudi SE (Tadawul) Singapore Exch 327 Borsa Istanbul Shanghai SE Japan Exch. Group Korea Exchange BME Spanish Exch BM&FBOVESPA 198% Among the most liquid markets in the world Taipei Exch Moscow Exch Bolsa Mexicana Source: WFE, Annual Statistics Guide 2016 27 SE of Thailand Taiwan Stock Exchange Source: WFE, Annual Statistics Guide 2016