Türkiye is working to determine an higher fund geared toward channeling extra sources into enterprise capital funds investing in corporations engaged in strategic sectors and know-how fields, in response to Treasury and Finance Minister Mehmet Şimşek.
Şimşek on Wednesday stated they’d reached the ultimate levels of making the fund with an preliminary anticipated dimension of $50 million (TL 1.62 billion), projected to extend sooner or later.
Şimşek had instructed the institution of such a fund to help entrepreneurs throughout his tenure as deputy prime minister in 2018. Works resumed after the extremely revered policymaker assumed his new function final June.
Highlighting the importance of enterprise capital, the minister emphasised its function instead financing software for early and growth-stage corporations, significantly these with speedy development potential in each superior and growing economies.
The ministry has been actively engaged in introducing new financing strategies since 2014 to help the entrepreneurship ecosystem and improve the capability and effectiveness of enterprise capital funds, he advised Anadolu Agency (AA).
“In this context, in 2015, for the first time in our country, the Turkish Growth and Innovation Fund was established through the initiative of our ministry in collaboration with the European Investment Fund, and our ministry became an investor by committing 60 million euros ($64.06 million) to this fund, which has a size of 200 million euros,” Şimşek stated.
Additionally, Şimşek recalled the collaboration settlement signed in 2018 between the ministry and the Scientific and Technological Research Council of Türkiye (TÜBITAK) for the implementation of the Tech-InvesTR Program, which began direct funding to enterprise capital funds.
Leverage impact
On the present stage of what he dubbed a brand new higher fund, to be arrange throughout the framework of the Türkiye Development Fund, the minister stated joint works run with the Türkiye Development and Investment Bank have reached the ultimate section.
“This upper fund will ensure the allocation of resources to venture capital funds that invest in companies operating in strategic sectors and technology fields. The aim is to support venture capital funds investing in sectors prioritized in development plans and policy documents such as the Medium-Term Program,” stated Şimşek.
“While the initial size of the fund is projected to be $50 million, the amount could increase with the participation of national and international investors.”
Şimşek assured that the fund could be managed in accordance with worldwide requirements and transparency. Annual audits by way of an impartial audit agency will guarantee accountability, with the opportunity of ministry-conducted supervision if needed.
Moreover, the minister outlined the anticipated features upon the fund’s operationalization.
“The aim is for the allocation of resources to indirectly support businesses producing high-value-added goods and services and to promote the widespread dissemination of entrepreneurial culture,” Şimşek stated.
“This is expected to create a leverage effect, thereby providing the necessary momentum to the venture capital ecosystem and contributing to our country’s technological development and value-added growth strategy.”
Source: www.dailysabah.com