T3 Podcast | Entrepreneur: The Person Who Creates True Value - Enis Hulli

A Deep Dive into Türkiye’s Entrepreneurship and Investment Ecosystem

In this episode of the T3 Podcast, we welcome Enis Hulli. The podcast explores Hulli’s insights and experiences as a founding partner of 500 Istanbul regarding Türkiye’s entrepreneurship and investment ecosystem. The conversation covers a broad spectrum, from fund strategies and the impact of the pandemic to the role of unicorn companies and areas for growth in the investor ecosystem.

500 Istanbul and Its Mission

Founded in 2016, 500 Istanbul raised its first fund of $10 million and subsequently increased its second fund to €30 million in 2021. Its core mission is to make early-stage investments in Turkish startups with global potential that export technology abroad. The success of this strategy is evidenced by the fact that 97% of the revenue generated by its active portfolio companies comes from outside Türkiye.

Comparison of Türkiye’s Entrepreneurship and Investment Ecosystems

Enis Hulli emphasizes that Türkiye’s entrepreneurship ecosystem is ahead of its investment ecosystem, which he views as a positive development. According to him, the entrepreneur plays a multifaceted role—like both the coach and the player of a football team—creating real value. Investors, by contrast, are like spectators watching the game. Hulli highlights a significant increase in both the number and size of local funds over the past two years.

The Impact of the Pandemic

Although the pandemic initially caused a financial shock, it accelerated technology investments in the long term. Hulli notes that this period sped up many processes, enabling companies to grow faster than expected. Key sectors positively impacted by the pandemic include digital entertainment (gaming), digital health, remote access, and applications that accelerated real-world interactions.

The Role of Unicorn Companies and Foreign Investors

The emergence of unicorn companies such as Peak Games has significantly increased the number of foreign investors and the volume of investments flowing into Türkiye. These successes have established the perception that Türkiye can produce billion-dollar companies, strengthened legal confidence, and initiated what is now called a “unicorn acceleration” process.

Areas for Development in Türkiye’s Investor Ecosystem

Hulli argues that Türkiye’s investor ecosystem is still young and requires further development. Key steps include enhancing experience and international connections, fostering collaboration among investors, and increasing fund sizes—particularly by establishing funds of €100 million or more. The goal is to reach the number of investors seen in countries like Poland and raise annual investment volumes above $1 billion.

Investor Rights and Critique of the Current Situation in Türkiye

Enis Hulli criticizes the rights that investors in Türkiye demand, such as board seats and budget approval authority. He believes investors should not hold any such powers, as the entrepreneur is the captain of the ship. These so-called “strange rights” slow down founders and turn startups into bureaucratic structures. He sees it as a punitive situation that local entrepreneurs face when the same investors would never demand such rights abroad.

The Future of Türkiye’s Ecosystem and Recommendations

Hulli is highly optimistic about the future of Türkiye’s entrepreneurship ecosystem, viewing its growth as a natural outcome of its inherent potential. This potential is reinforced by Türkiye being the second-largest producer of engineering graduates in Europe after Germany. His most important advice to entrepreneurs and investors alike is a call for continuous learning and self-improvement.