Treasury and Finance Minister Mehmet Şimşek said that they expect more foreign resources to enter Turkey’s startup ecosystem with the new regulation on venture capital investments.
Stating that some amendments will be made to the legislation on venture capital investment funds, Şimşek said that they are implementing the decisions taken within the scope of the action plan of the Coordination Board for the Improvement of the Investment Environment in order to facilitate foreign investors to invest in Turkey and to develop cooperation with them.
Regarding the regulation to be made, Şimşek said, “Our venture capital investment funds will now be able to invest in venture companies established abroad, with more than half of their investments in Turkey. We are paving the way for investment in a venture company that has not yet been established with contracts that give the right to become a partner in the future.”
New financing method
Emphasizing that they will thus bring a new financing tool to the capital markets, Şimşek said, “With the amendment we will make, we foresee more foreign resources entering the venture ecosystem of our country.”
Şimşek also stated that they will provide the opportunity to diversify the investment by distributing the risk through the venture capital investment fund instead of direct investment. Stating that they will pave the way for investing in venture companies that have already received investment and closed the investment round, Şimşek said, “Thanks to the ‘umbrella fund’ structure, which is another advantage of this regulation, the establishment processes of new funds will be considerably shortened.”
