How to find an investor. Managing Partner at DOMiNO Ventures about investing in the future of tech and AI

Yagiz Karadeniz shared his investment experience, discussed the DOMiNO Ventures fund, the types of startups he is currently seeking for investment, and provided valuable advice.

Yagiz Karadeniz, Istanbul city, Managing Partner DOMiNO Ventures, LinkedIn

About me

I am a Managing Partner at DOMiNO Ventures, where I focus on high-tech, pure-digital, and first-day global startups from Central Asia and Turkey. 

I hold an undergraduate degree in Economics and a Master’s degree in International Trade and Economics. Before becoming Managing Partner, I served as Managing Director at DOMiNO Ventures from the year 2021 and held senior positions at Tarvenn Ventures and Advisors, as well as TechOne Venture Capital. 

In addition to my work in venture capital, I am actively involved in various NGOs and investment networks that promote entrepreneurship.

An investor’s role goes beyond just providing capital, ongoing support is crucial for a startup’s success. Many VCs simply invest, but we prioritize our approach by offering strategic guidance, making warm introductions to other investors, and connecting B2B-startups with potential clients. Building strong relationships and helping founders navigate challenges is a key part of our investment philosophy. Additionally, a great investor needs to constantly track and analyze both global and local trends to identify emerging opportunities. Staying ahead of market shifts allows us to make better investment decisions and support our portfolio companies effectively.

About investments

One of the biggest challenges in startup investing is navigating hype cycles, especially in fast-evolving sectors like AI. With so much noise in the market, it is easy to get caught up in trends that may not have long-term viability. That is why patience and thorough evaluation are key — we take a comprehensive approach, analyzing a startup’s fundamentals, team, and real-world applications before making a decision. Instead of rushing into investments based on short-term excitement, we focus on sustainable growth potential.

My experience in startup investing has shown that the most successful ventures are led by founder teams with deep domain expertise and significant industry experience. Founders who truly understand their market can navigate challenges more effectively and build long-term competitive advantages. However, expertise alone is not enough — being open-minded, adaptable, and quick to pivot when necessary is just as critical. The startups that have performed best in our portfolio are the ones where founders combine strong industry knowledge with flexibility and execution speed. This balance allows them to seize new opportunities and stay resilient in rapidly changing markets. My team and I, along with the organizations I have managed for seven years, invested in more than 80 startups and we have four exits.

When selecting startups for investment, our strategy focuses on a few key factors. First, we prioritize the founders’ experience and domain expertise — teams with a strong background in their field are more likely to execute their vision successfully and navigate challenges effectively. We also consider the broader macroeconomic trends in the target markets, as these trends significantly impact the startup’s long-term potential. Scalability is another essential criterion, both in terms of market reach and product expansion globally. To assess risks, we closely examine how well the startup can adapt to changing market conditions and scale sustainably, ensuring a clear path to growth while mitigating potential challenges.

In addition to providing financial support, we help startups by offering strategic guidance through our startup-friendly approach. We actively engage with founders, providing valuable introductions to other VCs within our network, as well as potential clients, particularly for B2B-startups. These connections can open doors to new partnerships, funding opportunities, and customer bases. We also offer our expertise in navigating industry trends and market dynamics, helping startups make informed decisions and adapt quickly to changing environments.

We typically invest up to $300 000 in the first round we participate in, and for follow-on rounds, we can increase our investment up to $1 million as the startup progresses. The amount we decide to invest is based on several factors, including the size of the funding round, the startup’s valuation, and the other VCs involved in the round. We also consider parameters like the startup’s growth trajectory, product-market fit, and market dynamics. Additionally, we factor in potential dilution forecasting to ensure that our investment aligns with both our long-term goals and the startup’s growth potential.

The length of time we typically hold investments in a startup before exiting depends on a variety of factors. Key elements include the startup's growth pace, the exit opportunities available, and our fund's priorities at the time. Additionally, we consider external macroeconomic conditions such as interest rates, inflation, and overall liquidity in the market. Both internal factors, like the startup’s performance and strategy, and external factors, such as market conditions, influence the timing of our exit.

Investor's advice

Build a startup that solves a real problem with a scalable and competitive business model. Focus on product-market fit before scaling, and ensure strong unit economics. Surround yourself with a talented, adaptable team and prioritize customer feedback. Fundraising is important, but sustainable growth and execution matter more. Stay resilient, data-driven, and ready to pivot when needed.

When preparing to raise investment, it is essential for startup founders to first set clear goals for the business and develop a detailed plan on how the funds will be spent. Investors want to see that their capital will be used strategically to drive growth and achieve key milestones. It is also crucial to demonstrate the potential of your business, showing traction across various use cases and real-world applications. This helps build investor confidence in the scalability and impact of your product or service.

In terms of finding investors, it is important to filter VCs based on their investment thesis and create a target segment that aligns with your startup’s mission and goals. Investors can be found in many places, including LinkedIn, networking events, summits, and industry-specific gatherings. Building relationships in these spaces and leveraging your network can help you connect with the right investors who are genuinely interested in your sector and stage of development.

Plans

Right now, we are interested in Artificial Intelligence, DeepTech, CleanTech, HealthTech, FinTech, HrTech, EdTech, GameTech, Cybersecurity, and Life Sciences startups that are globally scalable from day one. We prioritize companies headquartered in the US, UK, and EU, with tech and operational teams in Turkey, Central Asia, or the Caucasus. Key focus areas include embedded finance, AI-driven automation, cybersecurity, sustainable energy, and digital health innovations. Startups should have strong traction, clear monetization potential, and a unique competitive edge in solving real-world problems.