Headquartered in Istanbul, StartersHub is an early-stage, sector-agnostic venture capital that backs Turkish and CEE founders. The firm invests as a first or second check investor, providing startups with support from their go-to-market to the scaling of their businesses.
Fund strategy overview
Fund size: $20M
Geography: Istanbul-based with focusing on Europe and Turkey
Preferred industries: B2B SaaS, AI, developer tools, security, marketing, blockchain
Investment ticket: $100k-$500k
Company stage: pre-seed, seed
Product stage: POC or post revenue
Revenues: >$0
Q&As with Arda Askin, Managing Director at StartersHub
What are the 5 main things you look for in a startup?
For me, the formula is different:
Market > Team > Product.
While many believe that a great team will always find a way to succeed, I do not. If there is a market with demand and pain points, even with an awful product, you can make it happen and create an impact.
Besides, I check the CTO first to see if they can create a 10x product. The founder should also know how to pitch and sell, and be well-versed in all the details about their market and segment. If the founder knows less than I do, it's a no from us.
What disqualifies a startup as your potential investment target?
We are cautious about investing in startups with only one founder. Having multiple founders provides a diversity of skills, perspectives, and a shared burden of responsibilities, which are crucial for the startup’s growth and resilience. An imbalance in equity distribution among co-founders can signal potential conflicts and misalignment of incentives. We look for teams where equity is fairly distributed, reflecting each founder’s contribution and commitment.
In technology-driven startups, having a full-time CTO who is also a co-founder is essential. This ensures that the technical vision and execution are aligned with the company’s strategic goals and that the necessary technical leadership is in place.
Startups without a proof of concept or some form of product validation are usually disqualified.
A POC demonstrates that the startup has moved beyond the idea stage and has begun to test its assumptions and market viability. By setting these criteria, we ensure that we invest in startups with a strong foundation and a balanced, committed team ready to tackle the challenges of scaling and growth.
What in your opinion differentiates the best founders from the rest?
Passion, good communication skills, understanding the market and customers, and a great ability to expand their network and sell the dream to new investors.
What startups should take into account before making a deal with a VC fund?
Liquidation preference and voting rights are important considerations. Without good monthly traction, you will likely end up with a lower valuation, and the founder will not have the upper hand. Therefore, obtaining a small investment to show some traction is crucial.
What is your approach to startup valuation and preferable share in the company?
We invest in pre-seed and seed stages, so our best shot is to exit at the Series B round. We consider how many times we will dilute and what the Series B valuation can be based on benchmarks. Based on this, we offer a valuation, accept the proposed valuation, or kindly decline.
How do you support your portfolio companies?
We try to help startups find their first couple of customers, make introductions to other VCs, and conduct monthly strategic business development meetings.
What are the best-performing companies in your portfolio?
Flixier, Knowt, Thread In Motion, Zeplin, Meditopia.
What are your notable lessons learned from investments that didn’t work out as expected?
One crucial lesson is that founders must be willing to pivot if they cannot find market fit or achieve expected growth. Insisting on a failing strategy can drain resources and morale.
Successful startups are those that can adapt and reorient their efforts based on market feedback and evolving circumstances.
It's essential to manage finances prudently. If there isn't enough money to sustain the business or if the expected results aren’t being achieved, it’s critical to cut costs immediately. Efficient capital management and a clear runway are vital for a startup’s survival and ability to capitalize on future opportunities.
Another key lesson is the importance of transparent and consistent communication with investors. Founders who provide well-organized reports and manage investor relations effectively tend to build stronger trust and support. This often leads to successful fundraising in subsequent rounds, as investors appreciate being kept in the loop and seeing a clear, data-driven narrative.
What are the hottest markets you currently look at as VC, and where do you see the biggest hype?
AI-based sales and performance tools, AI orchestrations for businesses, and blockchain infra projects have the biggest hype for me.
In your view, what are the key trends that will shape the European VC scene in coming years?
AI, green economy, future of work. Europe will be behind for blockchain, unfortunately.
