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The role of “Leading Investor” in the development of startups

As TRAngels, we always underline certain ideas. We believe that every idea that has a potential to improve the economy and social life should be evaluated. Our focus is on early-stage technology startups. They are long term projects dealing with deep technology. We invest when we believe in the potential of the technology they have developed, their technical knowledge and skills of the team, and finally the team harmony that executes the business model with the goal of achieving commercial success.

As a result, we start to accompany the startup on its long journey to become a company. At this point, we are fully aware of a following rule: Growing a business at the start of its commercial life requires more than just capital investment. As a result, we approach early-stage projects as if they were our own company.

Following our project evaluation processes, we decide to invest in startups that draw our interest during our mentorship activities in incubation centers, jury memberships in Demo Days, and various ecosystem activities. As soon as we invest, a labor-intensive process, responsibility, and ownership begin.

Lifecycle of startups: technology, sales and finance

Deep technology startups from almost every sector attracts our attention. The founders of these startups are mostly people who have knowledge and experience in the fields of R&D and P&D rather than sales, marketing, finance or operations management executed in a company. When we look at the startups that have achieved long-term success, we notice that they have formed a cohesive team just like in a company. Aside from technology, this team includes salespeople that market and sell the product, as well as finance people that manage money and investor relations. In short, startups that use technology to develop new products or services, sell them through effective marketing, provide new capital inflows, and make this lifecycle sustainable are successful and attract the attention of investors in the advanced stages.

To guarantee the flow of this cycle, we, as TRAngels, provide our smart money. The entrepreneurs in whom we invest consider us as a type of consultant. At this phase, our “leading investors” enter the scene.

Who is a “Leading Investor”?

At TRAngels, we are businesspeople from various sectors and fields of expertise who have worked in local and global positions for many years. The “Leading Investor” structure enables us to find answers to every question our startups have, to assist them in growing their businesses, to represent both TRAngels A.Ş. and individual investors, and to receive regular updates on the startup’s progress. “Leading Investor” is a model inspired by corporate structures in charge of customer or supplier management.

When our angel investors want to be a “Leading Investor”, they may be familiar with the industry and technology, or learn the business directly from the startup. What is critical here is that the start-up effectively communicates its own business, vision, and goals to the “Leading Investors.” Together, they collaborate to create a strategic plan to grow the business. “Leading Investors” step forward to fill the gaps in startup’s needs during their development journey.

The TRAngels Leading Investor Model

Every startup we invest has at least two leading investors. We also have startups with a leading investor team of 3 or 4 people due to the size of the operation and deep technology. The most important factors for our angels to be a leading investor are sharing the passion of the startup, as well as interest and curiosity in the business.

“Leading Investors” are in-house consultant of startups

With these features, our “Leader Investors” act as a kind of integrated service provider. At times, they may occasionally attend a business meeting with an international brand or headhunt in the selection of new team members. The goal is to ensure that the startup can attract new investors by sustaining its business life and taking the necessary steps toward scaling up.

The future of “Leading Investor”

Looking at the big picture, we believe that the title of “Leading Investor” will herald a new generation of a second career. “Leading investor” will become a new career field in the future, as a type of consultancy, because it not only includes years of business and team management expertise, but also creates a significant benefit in networking. The demand for “Leader Investors,” who add more value than mentoring or coaching, will develop even more and will develop in parallel with the growth of startups.

We place a high value on growing startups and developing strong collaboration and harmony with them to originate more success stories from Turkey. Just as creating resources for new investments, we will carry on improving our model to encourage our angels to be “leading investors”. Aiming to increase the number of startups competing at the global level, we will continue to invest in early-stage and support them with the contributions of our leading investors.

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