The number of people who obtain the angel investor license from
By Bahatti?n Gonultas
The recent global economic crises have led to significant changes in financial lending patterns, with banks now showing a reluctance to issue loans for new business start-ups. This pattern has been replicated across venture capital firms that now choose to target their investments at later stage companies.
As a result, many entrepreneurs are struggling to receive start-up funding for potentially profitable business ventures, especially in emerging countries such as
The number of people who have obtained an angel investor license from the
Angel investors are defined as affluent individual investors who have knowledge, expertise and available funding and who are ready to invest into high growth start-up companies; typically in the technology industry.
Baybars Altuntas, the President of the Business Angels Association of
The Turkish government has a 75 percent tax incentive for accredited angel investors, which is the highest in the world. The rate in the
"It is crucial for angel investors who succeeded in Silicon Valley to invest in Turkish entrepreneurs for Turkey to create global success stories," said Altuntas.
Altuntas also said the Turkish Treasury should invest in startups automatically at the same amount as the accredited angel investors, and joint investment trusts should be formed.
"Public sources can be turned into smart sources with the contributions of the angel investors and there will be better results if public resources are transferred to angel investors instead of transferring them directly to entrepreneurs via grants," he said.
"Entrepreneurship is more attractive for
Andrez also said that, following the agreement signed between the European Trade Association for Business Angels, Borsa Istanbul (Turkey´s main
Andrez added that the
Peri Kadaster, an angel investor in
"A positive side of
However, she pointed out some challenges for angel investors in
"As an angel investor myself, what I value most is the transparency and the trustworthiness of the Founders. At the end of the day, as an angel investor, especially in an early-stage round, you are aware that the business may not last forever, but a founder's reputation does," she said. "I strongly encourage Turkish entrepreneurs to make countless pitches, solicit honest and constructive feedback, and refine their products and business models accordingly – and while doing so, know that in addition to building a company, they are building their own brand and reputation."
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