500 Emerging Europe transforms into e2vc: a new era for global-focused startups

The team behind Istanbul-based VC firm 500 Emerging Europe has introduced its new identity as e2vc, marking an enhanced focus on supporting global-focused startups. 

While now fully independent from 500 Global, the team has always operated separately, with a focus specifically tailored to the region. 

I spoke to General Partners Enis Hulli and Arın Özkula to learn more.

e2vc has an interesting history. It originally partnered with 500 Global in 2016 and raised a €10 million Fund I  between 2016 and 2020. Out of 28 portfolio companies, three became unicorns. 

The portfolio was not only a funding success, but the combined companies employ over 4000 people.

A €70 million Fund II followed in 2021 and has already backed several companies that are close to achieving unicorn valuations, further validating Emerging Europe's potential to deliver the next wave of global success stories.

e2vc's portfolio has raised about $3 billion in follow-on funding from top-tier investors like Sequoia and Andreessen Horowitz.

e2vc's strategy is rooted in $1 million investments at the pre-seed and idea stages, contrasting with 500 Global's accelerator-driven model. 

Unlike many other regions, Emerging Europe consistently produces startups designed to scale internationally from the outset. e2vc aims to empower founders who embody this global-first mindset, positioning them to compete and win on the world stage.

Hulli shared:

"Our whole thesis has been to push founders to the US, and the macro thesis for us is that emerging Europe is the only emerging market where you can actually replicate the Israeli model across 26 countries, where every single country, whether that's Poland, Bulgaria, or Estonia, wants to be like Israel,  exporting technology from day one with strong presence in the US, where apart from talent, everything is pretty much global."

 According to Hulli, the firm's decision to double down on Eastern Europe and the Baltics alongside Turkey is highly advantageous.  

"We like the region because it has the similarity of high talent, and very sort of globally focused people. The markets are also quite small —you can't build something in your local market. So, the startups have been very global since day one."

Emerging Europe's tech talent is known for its technical mastery and adaptability, enabling these startups to go head-to-head with their US counterparts—like seasoned "away game" champions that thrive in any market. With a workforce skilled in cutting-edge technologies, 

Further, Emerging Europe's developers and engineers give startups a competitive edge, making them formidable players in international markets.

Hulli also sees an "anti-fragility in founders from Emerging Europe.

"Capital has never been their core advantage compared to the US competitors they were trying to go head to head with. Our companies had to start earlier so that they're early to the market, and once the market matures, they have more armour to be able to compete against an overfunded competitor.

In industries where we saw their competitors either collapse, get acquired, or die under the burden of all the liquidation preferences that stacked up, our companies didn't experience any of that."

According to Hulli, the firm makes "founder bets." 

"So we're very much focused on really strong globally focused founders, which means we are actually quite early to, to some of the markets because the really strong and good founders are hopefully building in these more blue ocean up and coming markets."

Historically this approach resulted in the first investments in early biotech, AI and dev tools, and gaming, a massive sector in Turkey.  

In terms of startup investment, Hulli sees the market in recovery, with the baggage from 2021 and 2022 now gone.

"I think Venture has hit a reset button and has recovered.

We are lucky because we focus on emerging markets across Eastern Europe, Turkey, and the Baltics, where the valuations were never that high anyway. 

So, we are always getting in on favourable terms compared to some of the overhyped markets in the West."

Over the last couple of years, e2vc's portfolio companies have been able to ride the wave with a resilient mindset of resourceful operations. 

"They came out the other side much stronger," notes Özkula.

E2vc has team members in San Francisco, New York City, and London.

Hulli shared:

"Overall, we're building a global network to empower founders. This network offers access to valuable connections—from fellow entrepreneurs to potential customers and investors.

By leveraging these relationships, founders can expand their businesses internationally while maintaining strong product teams in their home region."