Turk Of America 15-21
6/1/08
12:18 AM
Page 4
VENTURE CAPITAL
wan. After Google’s IPO, fienkut cashed in his options and took some time off to rest and to decide what to work on next. He entertained other options in retail and the restaurant business only to come back to what he knew - the high tech industry. He founded Felicis Ventures, an angel investment firm in 2005. He has invested in over 30 companies, including Buzzlogic, Disqus, Dogster, Meraki, Mint, Shopittome, Yapta, Yume Networks, Venturebeat, Webs.com, and Weebly since then, pitching in between $25,000 to $100,000 at a time. Before joining Google, Aydin was the Product Manager for the Data Visualization and Data Mining software MineSet, and led the business development efforts for the financial services industry at SGI. Aydin received his BS in Business Administration from Boston University, his MBA in Marketing from the Wharton School and his MA in International Studies from the School of Arts at the University of Pennsylvania. I met with Bar›fl Karado¤an,
George Nuray U¤rafl and Ayd›n fienkut for lunch at a restaurant in Palo Alto; we continued our conversation at Bar›fl’s office two blocks down on University Avenue.
GLOSSARY Venture Capital: a type of private equity capital typically provided by professional, outside investors to new, growth businesses. Venture capital investments are generally made as cash in exchange for shares in the invested company. Venture capitalist: (VC) a person who makes such investments. Venture capital fund: a pooled investment vehicle (often a limited partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans. Venture capital can also include managerial and technical expertise. Most venture capital comes from a group of wealthy investors, investment banks, and other financial institutions that pool such investments or partnerships.
First question goes to Nuray. You invested a lot in your academic career before you decided to become a consultant, eventually going on to the VC track. What triggered your decision? George Nuray U¤rafl: First let me say that I miss academic research at times, but to me it is a big and a hard decision to invest 30 years of one’s life on a tiny detail, especially when the implementation of your findings is not entirely up to you. What lured me into this field was the ability to see the big picture rather than getting lost in details.
What would you say is the primary value add of a good VC/VC firm, or an angel investor? Bar›fl Karado¤an: A good VC has to analyze the added value the new product or process offers. “What makes it different than the existing products? What makes it better than the existing solutions?” are the questions to be answered first.
Bar›fl Karado¤an: I definitely agree with Nuray, especially in the semiconductor industry you want to refrain from details as much as possible. VC’s have to keep a balance between research and the actual value add of that research.
George Nuray U¤rafl: Market analysis is more or less done by every entrepreneur before they start a business, but the main value is hidden in go-to-market analysis of a product or a solution. Even though China and India are strong technically, the
main reason they struggle with introducing new technologies lies in this go-to-market analysis. The U.S. has been doing it for a long time. Strategic and tactical marketing execution is something VC companies excel in and add value. Bar›fl Karado¤an: Knowledge of the product development process is the key here. To identify what it takes to bring a product to market requires perspective. Ayd›n fienkut: Angel investors come in earlier than VC’s in the process. Since they are individuals investing their own mo-
Ayfle Zambo¤lu with Karado¤an, fienkut, and U¤rafl.
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