TLDR:
Key points:
- Turkey is establishing an upper fund to support venture capital funds investing in strategic sectors and technology fields.
- The fund is expected to start with $50 million (TL 1.62 billion) and may increase in the future.
The Turkish government, led by Treasury and Finance Minister Mehmet Şimşek, is working on creating a new fund to expand financing for Turkish entrepreneurs. The fund, with an initial size of $50 million, is aimed at channeling resources into venture capital funds investing in companies operating in strategic sectors and technology fields. This initiative highlights the importance of venture capital as an alternative financing tool for early and growth-stage firms with rapid growth potential.
Minister Şimşek emphasized the role of venture capital in supporting the entrepreneurship ecosystem and enhancing the capacity of venture capital funds. The creation of the upper fund, to be established within the Türkiye Development Fund, is a collaborative effort with the Türkiye Development and Investment Bank. The fund will allocate resources to venture capital funds investing in sectors prioritized in development plans and policy documents.
The fund is expected to be managed according to international standards and transparency, with annual audits to ensure accountability. The aim of the fund is to indirectly support businesses producing high-value-added goods and services, promote entrepreneurial culture, and contribute to technological development and value-added growth in Turkey.
In conclusion, the establishment of this new fund signifies Turkey’s commitment to supporting entrepreneurship, innovation, and technological development in the country’s strategic sectors and technology fields.
