In a move that underscores its commitment to driving innovation and fostering tech entrepreneurship, one of Türkiye’s leading telecommunications and technology companies Türk Telekom's corporate venture capital arm, TT Ventures, has announced a strategic investment agreement with Digital Transformation Capital Partners (DTCP).
The partnership looks to catalyze the growth of technology startups and ventures through targeted investments and collaborative initiatives. It sets the stage for a collaborative effort between the industry giants, aiming not only for mutual cooperation but also to yield significant financial returns.
Under the agreement, TT Ventures has invested in the “DTCP Growth Equity III SCSp SICAV-RAIF Fund,” which includes prominent institutions and funds such as SK Telecom, Softbank and Deutsche Telecom.
This strategic move showcases TT Ventures' commitment to fostering technology entrepreneurship on a global scale.
By joining forces with globally recognized telecom and technology giants, TT Ventures plans to leverage its involvement in the fund to not only drive collaboration but also secure financial gains.
This investment marks a crucial step in the company's journey, as it transforms its investment model and goals while maintaining an independent investment committee.
By the end of 2022, TT Ventures had expanded its reach with various investors and solidified its commitment to supporting startups through the TT Ventures Venture Capital Investment Fund.
The company has also demonstrated its commitment to bolstering the startup-friendly ecosystem by bringing significant ventures to Türkiye and enabling local startups to seize international investment opportunities.
In addition to financial backing, the partnership with DTCP involves collaboration agreements where TT Ventures will facilitate connections between its existing investment portfolio, Türk Telekom, and group companies' digital products and services, and technology firms within DTCP. This collaboration is set to open avenues for investment, sales and partnerships with foreign investors, telecommunications companies and tech startups.
Muhammed Özhan, General Manager of TT Ventures, highlighted the company's efforts to propel startups toward growth and expand Türkiye's entrepreneurship ecosystem.
Özhan emphasized the significance of the agreement in not only generating financial returns but also in fostering the international expansion of Turkish startups.
“Last year, we launched the TT Ventures Venture Capital Investment Fund as a step of our efforts to carry the domestic venture ecosystem to the global level. With this fund, we aim to invest in technology-oriented enterprises with high growth potential and to provide strategic and financial benefits to the fund's investors,” he noted.
Özhan said they have opened their TT Ventures Office in San Francisco with the goal of achieving a global-level structure and the motivation of being a bridge connecting startups to the world.
“In this sense, the agreement we have signed with Digital Transformation Capital Partners has a great meaning for opening Turkish startups abroad in addition to providing financial returns. With the agreement, we also aim to bring important initiatives abroad to Türkiye,” he added.
Thomas Preuss, managing partner at DTCP, expressed enthusiasm over TT Ventures' participation in the third Growth Equity Fund, underscoring the increasing recognition of technology's role in shaping economies and the global business landscape.
Preuss highlighted the alignment between Türk Telekom's commitment to innovation and DTCP's mission to support cross-border success stories.
“This investment highlights the growing recognition of the important role of technology in shaping economies and the global business environment. Türk Telekom's commitment to supporting innovation perfectly coincides with our mission. Together with Türk Telekom, we are ready to promote technological progress and develop success stories that cross borders,” he noted.
“As one of the largest expert teams focused on B2B software in Europe, we are excited to continue supporting outstanding entrepreneurs and category leaders in the rapidly growing B2B software ecosystem and create attractive co-investment opportunities for our investors.”
DTCP's Growth Equity III Fund, which raised $300 million in its initial fundraising round, focuses on investing in early and growth-stage ventures with cloud-based business solutions, cybersecurity services offered as SaaS, Web 3.0, artificial intelligence, financial technologies and cloud-based infrastructure solutions.
DTCP growth funds have been investing in digital transformation and digital infrastructure initiatives with high global growth potential since 2015.
Since its establishment in 2018 as Türk Telekom's corporate venture capital company, TT Ventures has invested in 16 companies across various sectors, including healthcare, energy, education, artificial intelligence and telecommunications.
The latest collaboration paves the way for TT Ventures to present its existing investment portfolio to DTCP and explore global collaboration opportunities.
