ENTREPRENEURSHIP

Melih Ödemiş Co-Founder, Yemeksepeti.com

Angel Investor, Galata Business Angels

TURKEY

START-UPs

@melihodemis melih@yemeksepeti.com

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DAILY

BUT…. Why in Istanbul???

FACTS ABOUT ISTANBUL

Age: 3000 years Median Age: 30 Economy: %30 of Turkey Population: 15 Million In 2000: Internet penetration < 10% Food delivery: Existing but many single restaurants with no infrastructure Today: Internet Penetration: 70-80% Mobile Penetration: 100% Hundreds of local or international restaurant chains with 100s of branches all over Turkey

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MENU

•  ONLINE FOOD DELIVERY – A BRIEF HISTORY

•  MELİH ÖDEMİŞ – BIO // LOCAL & GLOBAL CONTEXT

•  DARK AGES... YEMEKSEPETI IS BORN...

•  YEMEKSEPETI.COM 2.0 - RESTRUCTURING

•  YEMEKSEPETI.COM 3.0 and EXIT

•  NEW OPPORTUNITIES FOR YEMEKSEPETI AND MELIH

•  Q & A

A brief history of Online Food Delivery

GLOBAL MARKET IN NUMBERS •  MILLIONS OF ORDERS EVERY DAY •  10-15$ EACH ORDER •  $20B ANNUAL TRANSACTION VOLUME •  $2-3B IN REVENUES •  %30-40 ANNUAL GROWTH

Melih Ödemiş BIO & Context @ 1976 Born in Istanbul , Turkey

Same year as Apple @ 1995 St Georg Austrian School, Istanbul Windows 95 released; Amazon.com,ebay.com launched First Internet Service Providers in Turkey, dial-up @1999 Boğaziçi U. Computer Science Google is live (98), AOL buys ICQ for $400M

Basic Portals in Turkey @1999-2000 Citibank İstanbul, Treasury

Dot-com bubble bursts 01’ Biggest Economic Crisis in Turkey @ 2002 Boğaziçi U. MBA eBay acquires Paypal for $1.5B Yemeksepeti.com is 1 year old 2001 - 2013 Yemeksepeti.com, CIO 2007 Endeavor Entrepreneur 2011 Galata Business Angels – Angel Investor

---- Melih ---- Silicon Valley ---- Turkey / YS

Melih Ödemiş BIO & Context @ 2012 still CIO & started Angel Investing Facebook goes public for $104B

General Atlantic buys %36 of Yemeksepeti.com for $44M

@ 2013 no more CIO GrubHub and Seamless merge, creating the biggest online food delivery company

Gezi protests in Turkey @ 2014 traveling in Latin America GrubHub - Seamless from USA and Just-Eat in Europe go public, each around $3B market cap Initial talks with potential buyers for Yemeksepeti.com @ 2015 yemeksepeti SOLD.... Apple’s market cap passes $700B , close to Turkey’s GDP

Delivery Hero from Germany buys Yemeksepeti.com for $589M, biggest exit in Turkish Internet ecosystem so far

---- Melih ---- Silicon Valley ---- Turkey / YS

First and biggest online food delivery portal in Turkey bringing together consumers and delivering restaurants. • 2000, 4 founders in Istanbul, all 24, NO ecosystem • 2001 – deepest economic crises in history 1$=600.000 TL >>>> 1$= 1.750.000 TL in 3 months • 2005, breakeven, active in 3 big cities , daily 1.500 orders • 2005, Broadband Internet arrives, survival of fittest dotcoms • 2008, minority investment from European Founders Fund (Rocket Internet), active in 18 cities, daily 10.000 orders

Yemeksepeti.com 1.0 - DIFFICULT TIMES…

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3 Main Areas of Growth

1 Growth in our core business

2 Geographical expansion

3 Product portfolio expansion

Yemeksepeti.com 2.0 – CORE Growth and BEYOND

Biggest online food delivery portal in Turkey expanding into MENA region and aiming to be #1 brand related with Food & Internet • 2008-10, total restructuring, 25 cities in Turkey Russia (izrestorana.ru) and UAE (foodonclick.com) launched, daily 25.000 orders • 2012, Russia closed. UAE showing good growth. New countries added in MENA and Greece. • 2012, General Atlantic from USA invests $44M for minority stakes as growth capital •  Irmik.com, Lokum.com , Papyon.com, yemek.com launched • Expanded activities into Lebanon, Jordan, Saudi Arabia, Oman, Qatar, Bulgaria, Romania

Yemeksepeti.com 2.0 – CORE Growth and BEYOND

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Geographical Expansion

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Product Portfolio Expansion

Delicacy e-commerce for foodies

B2B Procurement for restaurant

owners

Reservation & Reviews For eating

out

Content & Life style

• Mar 2013, daily orders ~60.000, active in ~50 cities in Turkey • Jun 2014, daily orders ~80.000 • 2014, Just-Eat and Seamless & Grubhub went public • Jan 2015, daily record > 100. 000 orders / day in TR • Jan 2016, daily record > 130. 000 orders / day in TR

Yemeksepeti.com 3.0 and EXIT

• May 2015, acquired by Delivery Hero from Germany, for $589M, biggest internet exit in Turkey so far • Shared $27M with employees in the company according to the Management Incentive Plan signed in 2012, another PIONEER ACTION

Yemeksepeti.com 3.0 and EXIT

• 2011, started first Angel investment activities with GBA • 2013 July, quit my exec position, replaced CTO, continued on Board until Exit • 2014 Jan – Apr ,a long postponed dream coming true... on the way for 75 days in Latin America, 8 countries, 25 locations • 3 fund investments and ~20 angel investments since 2011, in Turkey, Israel, Switzerland, Greece, UK

Melih 3.0

• A few significant Exits done, but unicorns neeeded • Major hubs: Istanbul (15M), Ankara (5M), Izmir (5M) • Young and more entrepreneurial, tech-savvy population • Handful of active Angel Investment Groups • Handful of local VCs, a few active international VCs • Significant awareness of big corporates and universities, especially private universities in hand with business world • Many incubators, accelerators, co-working spaces • THE GAME HAS JUST STARTED!!!

Turkey as an emerging start-up ecosystem

Melih en camino...

Melih en camino...

THANK YOU!

Q & A

@melihodemis

Melih Ödemiş Co-Founder, Yemeksepeti.com

Angel Investor, Galata Business Angels

APPENDICES

Turkish Startup Ecosystem Summary Turkish Startup Ecosystem has three generations. Startups in the first generation are the ones before broadband (1999-2004). It consists of Gittigidiyor (acquired by eBay, $217.5M in 2011), Yemeksepeti (acquired by DeliveryHero, $589M in 2015), Hepsiburada (Amazon of Turkey, 25% is acquired by Abraaj Group in 2015), Sahibinden (Craigslist of Turkey, not acquired yet), Biletix (acquired by Ticketmaster in 2006). The second generation is between 2004-2010, there is broadband in Turkey but no VC yet. Friends and Family is the main financing option in that period. The third generation is the generation of VC-backed startups (2010 - ). Markafoni (private shopping startup, acquired by Naspers, ~$200M in 2011), Trendyol (private shopping startup backed by KPCB, Tiger Global), Iyzico (Stripe of Turkey), Peak Games (Zynga of Turkey), Gram Games (Rovio of Turkey, 25M downloads with 1010 game) and many more startups.

Between 2010 to 2015, first local VC funds are established (212, Revo Capital, DCP, Act, String Ventures, Doga Girisim). Earlybird, Hummingbird, Intel Capital, 500 Startups, 3TS have existence in Turkey via some local managing/venture partners. In total, 41 foreign and local VCs have participated at least one investment round since 2010. Government has big role in startup ecosystem via accreditation and grants. Tubitak (grants arm of the government) has lots of grants for startups, accelerators and also VCs. Treasury deparment also giving accreditation for angel investors since 2013 so that angel investors are benefiting from tax advantages. As of July 2015, there are 318 accredited angel investors in Turkey. Treasury department also accredited angel networks. There are 10 accredited angel networks in Turkey. Approximately 300 startups founded every year since 2010. In the same period, 230 investment rounds made (46/year) and raised ~$250M in total. Last year, Istanbul Stock Exchange established dealroom for investors and startups similar to Nasdaq Private Market (joint venture with SharesPost)