Turkey setting up five venture capital funds for tech start-ups
Turkey is establishing five venture capital funds with a total initial size of 628 million liras ($110 million) to support start-ups in the technology industry, Industry and Technology Minister Mustafa Varank said.
The funds, which will include capital from local and foreign investors, as well as the Treasury and Finance Ministry, are expected to grow to 1.1 billion liras, Varank said, according to local media including BloombergHT television.
Varank said venture capital investments in Turkey stood at $59 million compared with $251 billion globally last year. The funds are needed to commercialise research and development products and to bring them to the real economy, he said.
The new venture capital investments will be made via the Tech-InvestTR Program, a joint initiative between the Treasury and Finance Ministry and the state-run Scientific and Technological Research Council of Turkey (TÜBİTAK), Varank said.
The five funds selected for investment cooperation, once protocols are signed, are 1,500 Startups Istanbul Annex, Arz Gayrimenkul & Girişim Sermayesi Portföy Yönetimi, Collective Spark Fund, Diffusion Capital Partners II and Gedik Portföy Yönetim, the Daily Sabah newspaper said.
Just under 150 early-stage technology-based start-ups will be supported in the next five years, Varank said.