According to Minister of Finance and Finance Mehmet Šimšek, Prime Minister Turkiye is working on establishing an upper fund aimed at putting more resources into venture capital funds that invest in companies involved in strategic sectors and technology fields. .
Şimşek said on Wednesday that he had reached the final stages of creating the fund, whose initial expected size was $50 million (TRY 1.62 billion) and is expected to increase in the future.
During his tenure as deputy prime minister in 2018, Simsek directed the establishment of a fund to support entrepreneurs. Work resumed after the eminent policymaker assumed his new role last June.
The Minister emphasized the importance of venture capital and its role as an alternative financing tool for early and growth-stage companies, especially those with rapid growth potential in both developed and developing countries. .
Since 2014, the ministry has been actively working on introducing new financing methods to support the entrepreneurship ecosystem and enhance the capacity and effectiveness of venture capital funds, he told Anadolu Agency (AA). Told.
“In this regard, in 2015, for the first time in our country, the Turkish Growth and Innovation Fund was established under the initiative of our Ministry in cooperation with the European Investment Fund, and our Ministry became an investor by contributing 60 million euros ( 64.06 million) to this fund, the size of which is 200 million euros,” said Mr. Šimšek.
Mr. Šimšek also highlighted the cooperation agreement signed in 2018 between the Ministry and Turkiye Scientific and Technical Research Council (TÜBITAK) for the implementation of the Tech-InvestTR program, which started providing direct funding to venture capital funds. I remembered.
leverage effect
Regarding the current stage of what he called the new Upper Fund, which will be established within the framework of the Turkiye Development Fund, the Minister said that the collaboration with the Turkiye Development and Investment Bank has reached the final stage.
“This upper fund ensures the allocation of resources to venture capital funds that invest in companies operating in strategic sectors and technology areas. Its objectives are prioritized in policy documents such as development plans and medium-term plans. “The aim is to support venture capital funds that invest in sectors that benefit people.
“The initial size of the fund is expected to be $50 million, but the amount may increase with the participation of domestic and international investors.”
Mr. Şimşek assured that the fund will be managed in accordance with international standards and transparency. Annual audits by independent auditing firms ensure accountability and allow for oversight by ministries if necessary.
Additionally, the Minister outlined the expected benefits from the operation of the Fund.
“The aim is to indirectly support enterprises producing high-value-added goods and services and to allocate resources to promote the widespread spread of entrepreneurial culture,” Şimşek said.
“This is expected to create a leverage effect and provide the necessary momentum to the venture capital ecosystem, contributing to our country’s technology development and value-added growth strategy.”
