Borsa Istanbul, EBAN sign deal on angel investors
Wednesday, May 14, 2014
ANKARA - Turkey's Borsa Istanbul -- the country's sole stock exchange -- signed Wednesday a Memorandum of Understanding with a European Trade Association on European Early Stage Investments Financing.
According to the agreement signed, the parties European Trade Association for Business Angels, Seed Funds, and other Early Stage Market Players and Turkey Business Angels Association will support the development of entrepreneurship in Turkey and the Balkan countries to encourage investment from angel investors and in the generation of employment.
The head of the Borsa Istanbul, Ibrahim Turan, speaking at a panel entitled "Early Stage Financing Techniques for Entrepreneurs," said that "the Angel investors are playing a big role in the public offering for small to medium size start-up companies, and without them, only local big companies can be opened to the public."
Despite small and medium size businesses constituting 95 percent of all businesses, Turan said that these businesses accounted for 60 percent of the total world-wide employment.
He also added that small and medium size businesses would need an extra $12 trillion, not including their own equity, until 2020 to make their necessary investments. "We have to find a solution for this in the next six years," he insisted.
Also speaking at the conference, Paulo Andrez, the president of the business angels association, said: "All stock exchanges open their doors to entrepreneurs. Borsa Istanbul is well established and its cooperation with Nasdaq stock exchange is a advantage for us."
Andrez added that if an entrepreneur develops a product, and then seeks financing for its manufacture, he or she can eliminate the initial funding risk with a reward funding system such as the European Trade Association for Business Angels.
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