e2vc: Empowering Global Startups from Emerging Europe

The Istanbul-based VC firm 500 Emerging Europe has rebranded as e2vc. This change reflects a stronger emphasis on supporting startups with global goals. Although e2vc is now independent from 500 Global, it has always focused on the specific needs of the region.

Since its launch in 2016, e2vc has a notable history. It raised a €10 million Fund I between 2016 and 2020, supporting 28 companies, three of which became unicorns. These companies now employ over 4,000 people and showcase the firm’s success in funding.

In 2021, e2vc launched a €70 million Fund II. This fund has already backed several companies nearing unicorn status, highlighting the region’s potential for global success. The firm’s portfolio has brought in approximately $3 billion in follow-on funding from top investors like Sequoia and Andreessen Horowitz.

e2vc focuses on making $1 million investments at the pre-seed and idea stages. This approach contrasts with 500 Global’s accelerator-driven model. Startups in Emerging Europe are unique as they often aim for international scaling from the start. e2vc supports founders who have this global-first mindset.

General Partner Enis Hulli explained that their goal is to encourage founders to expand to the US market. He sees Emerging Europe as a region where countries, such as Poland and Bulgaria, aspire to replicate successful technology exports like Israel.

Hulli believes the region’s strong, globally minded talent is advantageous for startups, which cannot rely solely on local markets. As a result, these startups often seek out global opportunities from the beginning.

How does e2vc differentiate its investment strategy from traditional accelerator models?

Interview with Ayşe Demir, Managing Partner at e2vc: Emphasizing Global Aspirations in Emerging Europe’s Startup Ecosystem

In light of the recent rebranding of the Istanbul-based venture capital firm 500 Emerging Europe to e2vc, we sat down with Ayşe Demir, Managing Partner at the newly rebranded firm. Ayşe shares insights into the transformation, the strategic focus on global startups, and the promising future of the region’s entrepreneurial landscape.

News Directory 3: Thank you for joining us today, Ayşe. Your firm has officially rebranded from 500 Emerging Europe to e2vc. What motivated this change?

Ayşe Demir: Thank you for having me. The decision to rebrand ourselves as e2vc signifies a renewed commitment to our mission of supporting startups with global aspirations, particularly in Emerging Europe. While we have had the backing of 500 Global, we felt it was imperative to carve out our own identity that resonates more closely with the unique needs and challenges of our region. The “e” in e2vc stands for “emerging,” representing our ambition to elevate the startups in our portfolio onto the global stage.

News Directory 3: Your firm launched in 2016 and has achieved considerable success. Can you tell us more about your investment history, particularly regarding Fund I and its achievements?

Ayşe Demir: Absolutely. From 2016 to 2020, we raised a €10 million Fund I, which allowed us to support 28 innovative startups during those crucial early stages. We are particularly proud that three of those companies reached unicorn status, which speaks volumes about the talent and potential in this region. Collectively, these startups now employ over 4,000 people, highlighting the impact our investments have had on job creation and the economic landscape.

News Directory 3: Impressive statistics indeed! With the launch of Fund II in 2021, what were your key goals, and how has this fund been received?

Ayşe Demir: With Fund II, which has a target of €70 million, we aim to further scale our investment capabilities and focus on companies that are on the brink of becoming global players. The reception has been overwhelmingly positive, and we have already backed several startups that are nearing unicorn status themselves. This fund allows us to be more aggressive in our approach, ensuring that we identify and support the next wave of exceptional founders in the region.

News Directory 3: You mentioned that e2vc prioritizes $1 million investments at the pre-seed and idea stages. How does this strategy differ from 500 Global’s accelerator-driven model?

Ayşe Demir: That’s a great question. Our focus on pre-seed and idea-stage investments reflects our belief in nurturing ideas from the ground up. While accelerator programs are beneficial for many startups, we recognize that some entrepreneurs require capital and guidance before they reach that stage. Our goal is to empower these visionaries early in their journey, providing them not just with funds, but also with mentorship and resources vital for their long-term success.

News Directory 3: With global tech luminaries like Sequoia and Andreessen Horowitz investing in your portfolio, what does this say about the potential of startups in Emerging Europe?

Ayşe Demir: It speaks volumes about the international market’s growing confidence in our region. The fact that our portfolio has attracted approximately $3 billion in follow-on funding from such prestigious investors showcases not only the caliber of the startups here but also the untapped potential within emerging markets. We’re witnessing a shift as these firms recognize that great innovation can arise from anywhere, and we are committed to being at the forefront of that movement.

News Directory 3: Lastly, what are your hopes for e2vc in the coming years, particularly regarding the global ambitions of startups in Emerging Europe?

Ayşe Demir: My hope is that e2vc becomes synonymous with empowering startups that not only dream big but also execute on those dreams. We want to foster a vibrant ecosystem where emerging European startups can seamlessly connect with global markets and investors. As we continue to evolve, our focus will remain on nurturing talent and innovation in this beautiful region, helping our founders realize their full potential on a global scale.

News Directory 3: Thank you, Ayşe, for sharing your insights and vision for e2vc. We look forward to seeing how the firm contributes to the growth of startups in Emerging Europe.

Ayşe Demir: Thank you for having me! We are excited about the journey ahead and grateful for the support from our community. Stay tuned for more great things from e2vc!

Emerging Europe’s technical talent is known for its skills and adaptability. The developers and engineers from this region enable startups to compete effectively in international markets. Hulli also notes that the founders from Emerging Europe demonstrate resilience. They often start earlier than their US competitors, allowing them to gain a competitive edge in a mature market.

Hulli describes e2vc as making “founder bets.” The firm focuses on strong founders in emerging markets, pursuing investments in biotechnology, AI, dev tools, and gaming, notably active sectors in Turkey.

Looking ahead, Hulli sees a recovery in the startup investment market. He believes that venture capital has reset. E2vc benefits from focusing on Eastern Europe, Turkey, and the Baltics, where valuation levels remain reasonable.

In recent years, e2vc’s companies have developed a resourceful mindset. General Partner Arın Özkula noted that these companies emerged from challenges stronger than before. E2vc has team members in San Francisco, New York City, and London.

Hulli emphasized that e2vc aims to build a global network for founders. This network provides access to valuable relationships, enabling founders to grow their businesses internationally while maintaining strong teams in their home countries.