In a strategic move to bolster the nation’s entrepreneurial landscape, Türkiye is initiating an ambitious fund to contribute to the growth of technology startups in the country.
Addressing an event organized by the Presidential Investment Office, Türkiye Wealth Fund (TWF) CEO Arda Ermut announced the activation of the Türkiye Technology Fund (TTF), an initiative that is aimed to reach a size of $1 billion (TL 27.6 billion).
Ermut highlighted the fund’s pivotal role: "Billion-dollar technology initiatives showcase Türkiye’s investment potential. We are launching the Türkiye Technology Fund, often referred to as the fund of funds, to actively contribute to the growth of technology startups in Türkiye.”
The foundation for the fund was laid by the partnership between TWF and Abu Dhabi-based investment and holding company ADQ in 2022.
The fund seeks to back the Türkiye technology ecosystem, including emerging technology companies and those enhancing existing technologies in key sectors. It will invest in venture capital funds and companies with high growth potential in Türkiye.
“The Türkiye Technology Fund will act as both venture capital through direct investment and core capital for other funds in crucial stages like seed funding or capital increase,” explained Ermut.
“This initiative not only benefits technology startups in Türkiye but also significantly contributes to the growing entrepreneurial and venture capital ecosystem in the country.”
Ermut emphasized that the Türkiye Technology Fund aspires to become a benchmark technology initiative, accelerating the growth of the country’s tech ecosystem.
“We envision the Türkiye Technology Fund as a cornerstone of the Century of Türkiye vision, supporting funds investing in Türkiye-based startups,” he said.
“To benefit from this fund, companies must meet specific criteria, including being established in Türkiye, employing local engineers or technical staff, conducting research and development within the country and having a significant portion of their intellectual property or revenue generated in Türkiye,” he noted.
Ahmet Burak Dağlıoğlu, the head of the Presidential Investment Office, emphasized the pivotal role of regional hubs in technology entrepreneurship.
“We’ve taken significant steps toward fostering entrepreneurship culture. Seeds planted at events like Teknofest are now bearing fruit. Startups excelling at Teknofest accolades at entrepreneurial events and manage to secure investments. We are actively promoting participation of Turkish startups at international events,” said Dağlıoğlu.
Dağlıoğlu was referring to Türkiye’s largest aviation and technology festival that has been promoting the country’s latest advancements in multiple areas.
“Investors in Berlin, London, the United Arab Emirates (UAE) and Singapore are exploring investment opportunities in Türkiye and making investments in Turkish startups. We have witnessed many tech-oriented investments in recent years. We have a robust infrastructure and a skilled workforce. I believe Türkiye will become a global hub for significant technology investments in the next five years,” he stated.
TWF’s Ermut said they seek the Türkiye Technology Fund to be an initiative that accelerates the expansion of the ecosystem.
“We aim for the Türkiye Technology Fund to be a benchmark program that accelerates ecosystem growth, serving as a reference fund in this domain. It’s an integral part of the Century of Türkiye vision and will be the fund of funds, supporting funds investing in Türkiye-centered ventures,” noted Ermut.
“We expect these funds to cultivate pioneering companies that support Türkiye’s strategic and technological autonomy. Additionally, we anticipate them to bolster the global success of our tech startups.”
The Türkiye Technology Fund will focus its investments on three key areas:
1. Venture capital funds investing in Türkiye-centric technology startups.
2. Venture funds supporting initiatives pivotal to Türkiye’s strategic and technological development.
3. Startups at pre-seed, seed, early, middle and late stages of development.
