TOBB to hold $1billion 'fund-company meeting'


The Union of Chambers and Commodity Exchanges of Turkey (TOBB) is set to arrange a meeting between Anatolia's upcoming companies and 10 venture capital firms planning to invest $1 billion in them within two years.

As part of its project titled "Venture Capital Anatolia Meetings," TOBB is working to guide the venture capital firms seeking to invest in private sector companies that have growth potentials and are located in Anatolia's developed provinces.

TOBB President Rifat Hisarcıklıoğlu said they want to help Anatolia's up and coming companies rise to a higher league. Through this meeting they aim to create an environment for relationship and investment between the funds and companies, he said.

The first leg of the "Venture Capital Anatolia Meetings" was held in Gaziantep and the next will be organized in Konya in the near future. The meetings will then continue in other Anatolian cities.

Talking to journalists, TOBB President Rifat Hisarcıklıoğlu said investments from venture capital funds follows a business model that can bring profit to all parties and increase its weight in the world.

Hisarcıklıoğlu said the investments of the funds that want to invest $1 billion within two years in Anatolian companies have reached $5 billion in Turkey so far.

"We want to support Anatolia's upcoming companies to reach a higher league. Our aim to spark an investment relationship between funds and companies," the TOBB president said.

"The most important Turkish companies in their respective sectors have all received investments from venture capital funds," he added.

He said, "In previous experiences, we have observed that companies receiving investments from venture capital funds significantly improved their growth and profitability performances. They also excelled in management and eventually opened up to new markets."

Hisarcıklıoğlu pointed out the emergence of a number of successful companies in different parts of Turkey and added that this increase in the number of well-managed and value-added companies would be key to Turkey's growth.

Noting that venture capital funds could also contribute to their partner companies, he said, "These firms make a profit by selling their shares in companies that have grown exponentially over five to seven years. Venture capital funds seek to partner up and invest in companies around the world that have a high potential for growth."

The TOBB president added that venture capital investments reached $320 billion globally in 2016 while their allocated amount for investment rose to $525 billion.

"These funds do not take the country risk as a criterion, unlike portfolio investors. Their main criterion is the potential for growth of a company," Hisarcıklıoğlu said.

Venture capital funds acquire shares in high growth potential companies with amounts collected from personal wealth management offices of wealthy local and foreign families, publicly supported funds, and international institutions.

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