eBay Takes Majority at GittiGidiyor

eBay announced today that it has increased its stake in GittiGidiyor, Turkey's leading ecommerce company to 93%.  This is a landmark transaction for Turkish internet.  Congratulations to Serkan, Burak, Tolga, Aydonat, and the team at iLab!  This is the fruit of a lot of hard work.

The real winner in the deal is the Turkish internet, ecommerce and VC industries.  This is the first  internet exit of a magnitude that creates real wealth for the entrepreneurs.  That means the case for internet entrepreneurship as a viable career path for the best and the brightest coming out of the best schools in Turkey has gotten stronger.  The bottleneck of high quality talent for web startups might just get a bit eased.

I bet there are tens of LP presentation decks being updated today, as this transaction gets added to the top of the page dealing with the tough question of internet exits in Turkey.  A similar update will take place in corporate development departments of any global internet companies, as Turkey becomes more and more visible on the international M&A roadmap.

Finally, this is also a personal landmark for me and my career as an entrepreneur and investor in Turkey.  I'd met the GG team back in 2005 and had the chance to work on the deal alongside the iLab team in 2006.  Back then, I had felt that this was the greatest Turkish internet company to invest in. It's nice to see that after 6 years, eBay agreed.

How to Think About Your VC

I am reading Jeff Bussgang's book and came across a great quote.  If you are an entrepreneur talking to a bunch of VCs and trying to make sense of the process, or trying to decide if you can be partners with that guy across the table from you, I don't think you can go wrong this line of thinking from Twitter's Jack Dorsey:

Is this guy fun to work with? Is he going to challenge us? Is he smart? This person was going to take a seat on the board. I viewed it as a hire that we could never fire.

Ideal Term Sheet

There was a post on AVC last week (inspired by a post by Chris DÄ°xon) on what type of issues are important on early stage VC term sheets.  Both posts and the comments are must-reads for any entrepreneur looking to raise venture capital.

On the heels of this conversation, came a draft first round term sheet published by TheFunded Founder Institute, laying out what they see as standard, acceptable terms.  It's great to see that a FFI, which specifically supports founders, has put out terms that are fair.  I think this document can be a starting point in many funding situations.