Turkey’s wealth fund and Abu Dhabi’s $110 billion state investment and holding company announced on Wednesday they have launched a fund to back Turkey’s technology ecosystem, including companies developing emerging technologies or improving existing ones in key sectors.
The $300 million tech fund between Turkey Wealth Fund (TWF) and Abu Dhabi Developmental Holding Company PJSC (ADQ) will invest in venture capital funds and companies with high growth potential in Turkey, a statement said.
It marks “the first step by the TWF as part of its vision to establish a broader $1 billion technology platform, to become the reference technology fund accelerating technological growth in Turkey and driving growth in strategic technological sectors critical to Turkey’s development,” the TWF said.
The fund is designed to accelerate the growth of the Turkish technology ecosystem by deepening access to venture capital through dedicated funds, investing in disruptive technologies to drive growth in the TWF’s traditional portfolio and advancing strategic technological investments in sectors critical to Turkey’s development, read the statement.
The Turkey Technology Fund – ADQ TWF was launched in a ceremony attended by Arda Ermut, CEO and board member of TWF, Mohamed Hassan Alsuwaidi, managing director and CEO of ADQ, and Turkey’s Investment Office head Ahmet Burak Dağlıoğlu.
A statement by the ADQ said the fund was established to undertake investments in Turkish high-growth startups with innovative business models.
The fund will invest in companies developing emerging technologies or improving existing technologies in sectors such as energy and utilities, health care and life sciences, food and agriculture, mobility and logistics, financial services and education, it noted.
The TWF said the goal of the fund will be to augment the capital available to the existing Turkish venture capital fund universe, while the venture capital fund will increase funding for the Turkish startup ecosystem.
It also aims to provide the opportunity to form partnerships with other institutional investors while supporting seed, later stage, growth equity and larger-sized venture capital investments.
Turkey has grown significantly in its technology ecosystem over the last few years, said Ermut.
“We believe Turkey Technology Fund – ADQ TWF will give ADQ and TWF access to a pipeline of compelling investment opportunities specialized in next-generation technologies that will contribute to the strategic growth of Turkey’s economy and ultimately reinforce bilateral cooperation between both our nations,” he added.
Compared to similar funds in Turkey, Ermut said the Turkey Technology Fund “will create a unique added value for our country with its volume and international direct investment dimension and the multiplier effect it will provide for other technology investments.”
For his part, Alsuwaidi stressed that Turkey is “an attractive market with substantial opportunities for investing in vital sectors that align with our areas of expertise.”
Launching the fund builds on the broader commitment to investing in the future growth of Turkey “we made in late 2021 as the UAE and Turkey continue to advance bilateral trade and investment,” he noted.
“Turkey is an attractive market with substantial opportunities for investing in vital sectors that align with our areas of expertise. By providing access to the national and regional champions in our portfolio, we will help to unlock even greater value for these companies and funds with high-growth potential.”
