TRY 750 Million in Support for Türkiye’s Future

In his opening remarks, Minister of Industry and Technology Mustafa Varank said: “We are taking a historic and visionary step for Türkiye’s productive future. To support growth and development more strongly, we are implementing a new reform in our financial markets. When we examined venture-capital practices in our country, three issues stood out. First, compared with developed countries, we saw that we lag behind in both the number and volume of investments. Second, entrepreneurship in our country is currently supported almost entirely by the public sector. We stand by entrepreneurs under all circumstances and will continue to do so. However, to undertake larger initiatives, the private sector must also support newly emerging ventures and approach these opportunities with enthusiasm. Looking at global practice, it is clear that the private sector carries much of this responsibility. Our final observation was that existing mechanisms are not distributed evenly across the country. In other words, venture-capital investors concentrate their investments in Türkiye’s more developed regions. We therefore took action to increase venture-capital investments, encourage the private sector to focus on this field and spread these investments across the country. The Technology and Innovation Fund and the Regional Development Fund to be established today under Türkiye Development Fund serve precisely these objectives.”

Minister Varank continued: “These funds will invest in technology, industry, innovation and the future of a productive Türkiye. The investments will enable us to make the best use of our domestic and national potential and accelerate the fundamental transformation we seek in industry and technology. We are not speaking solely about money or resources. We will also provide strategic guidance that enables companies to make more rational investment decisions. In this way, we aim for institutionalised and competitive companies capable of enduring for generations to become dominant in the economy. Through these two funds, we will offer companies long-term equity support and prevent them from being crushed under an interest burden.”

TKYB CEO İbrahim Öztop said that, through Türkiye Development Fund and its sub-funds, the Bank would continue supporting sectors of strategic importance to Türkiye’s sustainable growth and invest in new-generation ventures. Öztop continued: “Alongside the development banking activities it has successfully carried out to date, our Bank has also assumed the role of supporting dynamic sectors by actively using investment banking and venture-capital instruments through Türkiye Development Fund. Türkiye Development Fund will serve as an umbrella fund that supports technology and innovation investments, industrial enterprises in strategic sectors prioritised for development, and SMEs contributing to regional development through its sub-funds. Through this first-of-its-kind structure in Türkiye, we will support sustainable development in every area our country needs.”

Öztop added: “Two fund themes have currently been finalised under Türkiye Development Fund. The first is the Technology and Innovation Fund, which will particularly energise the entrepreneurial ecosystem. The second is the Regional Development Fund, which we will implement in coordination with development agencies. As Development and Investment Bank of Türkiye, we are proud that our professional team will manage this process with the support of the Ministry of Industry and Technology. Over the next five years, we will invest a total of TRY 750 million in numerous companies and ventures in Türkiye through the Technology and Innovation Fund and the Regional Development Fund. We expect these investments to mobilise approximately three times that amount in capital for Türkiye’s sustainable development. In addition to providing financial support, our experienced team will assist companies with managerial, financial and strategic advisory services and institutionalisation. With incoming investments, we aim for the combined size of these funds to reach TRY 1 billion by the end of 2020.”

Development Fund to Contribute to Sustainable Growth

Türkiye Development Fund was established to offer an alternative financing instrument, similar to international examples, to companies and funds that will contribute to Türkiye’s development and sustainable growth through the sub-funds to be established under its umbrella. Founded and managed by Development and Investment Bank of Türkiye, Türkiye Development Fund stands out as an investment platform that will operate flexibly and in line with global best practices within the authority granted by Law No. 7147.

About Development and Investment Bank of Türkiye

Since 1975, Development and Investment Bank of Türkiye has supported development initiatives in every area needed by Türkiye. Drawing on its strong international standing and the resources it secures, it supports competitive and efficient production for a stable and robust economy. In line with the 2023 objectives, guided by the 11th Development Plan and the United Nations Sustainable Development Goals, the Bank focuses on financing sustainable development. With experienced and specialised human resources possessing command of global banking standards, a dynamic structure, and innovative products and services, it will continue to stand by investors.