European Investment Fund (EIF), Undersecretariat of Treasury, Small and Medium Enterprises Development Organization of Turkey (KOSGEB) and the Industrial Development Bank of Turkey (TSKB) have established the Turkish Growth and Innovation Fund to support innovative and technology oriented businesses with a rapid growth potential.
The €200m fund will be Turkey’s next generation of Fund of Funds succeeding the Istanbul Venture Capital Initiative (iVCi), which was launched in 2007 and made 10 investments.
It will focus on private equity, venture capital, business angels and early stage investments in Turkey.
In details, the Turkish Growth and Innovation Fund will invest:
– 40% of its aggregate commitments in funds which have a focus on investments into seed, early stage and start-up businesses; suitable technology transfer accelerators; or investments involving business angels, and
– 60% in funds which have a focus on investments into expansion capital, replacement capital, mezzanine and buy-out stage or other similar growth investments.
Investors in the vehicle included the Undersecretariat of Treasury (€60m), SME Development Organisation of Turkey (€60m), the Industrial Development Bank of Turkey (€20m) and European Investment Fund (€60m), which is also adviser to TGIF.