EIF, KOSGEB and TSKB launch Turkish Growth and Innovation Funds
The Turkish Growth and Innovation Fund, established by European Investment Fund (EIF), Undersecretariat of Treasury, Small and Medium Enterprises Development Organization of Turkey (KOSGEB) and the Industrial Development Bank of Turkey (TSKB) to support innovative and technology oriented businesses with a rapid growth potential has been officially launched.
The Launch Event for the Turkish Growth and Innovation Fund was held in Istanbul today, in the presence of the Deputy Prime Minister of Turkey, Mehmet Şimşek. European Investment Fund Chief Executive Pier Luigi Gilibert, Director General of Financial Sector Relations & Exchange of the Treasury Ali Arslan, President of KOSGEB Recep Biçer, CEO of the Industrial Development Bank of Turkey Suat İnce as well as other prominent names of Turkish ecosystem of finance, entrepreneurship and investment were also present at the event.
The Turkish Growth and Innovation Fund will be Turkey’s next generation of Fund of Funds and will succeed the Istanbul Venture Capital Initiative (iVCi). Turkey’s first ever Fund of Funds, iVCi, was launched in 2007 and made 10 investments, including in some of Turkey’s most successful funds in the country. With a strong focus on innovation, the Turkish Growth and Innovation Fund shall provide more fire power for early stage investments, while continue supporting growth capital funds. The Fund shall be advised by the EIF.
European Investment Fund Chief Executive Pier Luigi Gilibert stated:” This new generation of Fund of Funds is the result of years of experience gained with the successful roll-out of iVCi – Turkey’s first fund-of-funds. We are ready to invest via the Turkish Growth and Innovation Fund to support SMEs in Turkey. With our commitments of EUR 60 million for a total fund size of EUR 200 million we are looking forward to the first investments into Turkish businesses.”
Ali Arslan, Director General at the Undersecretariat of Treasury stated: “Turkey offers a significant potential for venture capital investments. Both the fact that venture capital investments per capita are low compared to other countries and competition is not yet fierce adds to the factors that make the Turkish market attractive for equity investments.”
Recep Biçer, President of KOSGEB stated: “To enhance access to finance mechanisms for small and medium-sized enterprises that have innovation and growth potential has always been in KOSGEB’s agenda. Building on the success of iVCi, we are stepping up our efforts on this front and continue to contribute development of venture capital eco-system in Turkey through TGIF. We will be pleased to cooperate with institutions that want to be part of this mission.”
Suat İnce, CEO of TSKB stated: “As a development bank with a mission on sustainable development in Turkey, we believe that innovative sectors creating high value added are indispensable to achieving growth targets. We are happy to be part of this initiative that aims at providing equity finance for technology and growth oriented companies, within the context of our multi-dimensional investment banking.”
The event held on May 12, 2016 at Istanbul Çırağan Palace, where the Deputy Prime Minister Simsek delivered a key note speech, included two panels, “What Value do Venture Capital Investments Provide to Turkish Entrepreneurs?” and “Istanbul as a Regional Center for Venture Capital Investments”. The meeting hosted the most prominent names of Turkish ecosystem of finance, entrepreneurship and investment as audience, where Kerim Yalman, Managing Partner at Pera Capital Partners, Murat Erkurt, Managing Partner at Mediterra and Evren Üçok, Managing Partner of Earlybird Venture Capital were among the panellists in addition to the senior executives of the Sponsors of TGIF.
European Investment Fund – www.eif.org
The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, the EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.
Undersecretariat of the Treasury – www.treasury.gov.tr
Treasury has the legal personality and carries out many functions including among others: the debt management of the country, regulating the insurance sector, executing foreign economic relations of the country, determining the rules related to the exchange legislation and ownership and supervision of the state owned enterprises. In addition to these responsibilities, the Treasury has also become the authorized public body responsible for implementing policies related to the angel investments. Treasury also takes an active role to support venture capital in Turkey.
Small and Medium Enterprises Development Organisation (KOSGEB) –www.kosgeb.gov.tr
Established in 1990, KOSGEB is the public agency tasked with supporting the development of Turkish SMEs through various programs and services. After the amendment of the Establishment Law of KOSGEB in 2009, besides manufacturing sector, services and trade sectors were included into the KOSGEB’s target audience. KOSGEB’s operations include operation of public incubation centers and joint use of technology service centers. Based in Ankara, KOSGEB operates with approximately one hundred regional offices and centers in 81 provinces of Turkey. Additionally, KOSGEB participates in the specialized investment vehicles for the benefit of Turkish SMEs. Up to now, the number of SMEs registered in the KOSGEB data base has reached approximately 850,000 and 89,726 of these enterprises have been directly supported by KOSGEB between 2010-2016 (May) via different incentive schemes totalling EUR 479 million. Through the loan interest support programmes; KOSGEB provided 215,777 SMEs with EUR 343 million support, which leveraged EUR 3.6 billion loan volume. Additionally between 2010-2016 (May), 405.000 participants completed KOSGEB’s start-up training programmes.
Industrial Development Bank of Turkey (TSKB) – www.tskb.gov.tr
TSKB provides support for the sustainable development of Turkey, offering corporate loans, project financing, investment banking and consultancy services since the 1950s. Through financial subsidiaries offering real estate and sustainability solutions, TSKB also adds value to its customers’ investments.
From the day it was established, TSKB has been bringing together global funds with the investments of the Turkish business world, within the scope of the long-term business partnerships it has developed with supranational finance corporations. TSKB, which offers private consultancy solutions for the financial, technical and environmental sustainability of investments together with the long-term loans it provides, also creates value for the development and growth of the Turkish economy with its quality investment banking services. In its capacity as an effective investment bank, TSKB gives its customers the benefit of its world-class investment banking experience with products and services that have been carefully crafted to meet their specific needs.
TSKB integrates the economic, social and environmental dimensions of its globally accepted sustainability practices in all of its banking processes, and provides support for the transition of the business world to a low carbon and more efficient production level.
TSKB, has been deemed worthy of the Financial Times and IFC ‘Sustainable Banking of the Year’ award three times in a row, and awarded at the Corporate Governance Summit thanks to the just, transparent and accountable corporate management it has shown since 2011. TSKB, as the first Turkish bank to obtain an ISO 14001 Environmental Management System certificate, has been publishing sustainability reports since 2009. TSKB also maintains its characteristic of being the first carbon neutral bank in Turkey, by offsetting its carbon footprint, since 2008. Headquarted in Istanbul, TSKB also has branches in Ankara and Izmir.
The Turkish Growth and Innovation Fund (TGIF) is a fund-of-funds whose main focus is private equity, venture capital, business angels and early stage investments in Turkey. TGIF targets 40% of its aggregate commitments to be invested in funds which have a focus on investments into seed, early stage and start-up businesses; suitable technology transfer accelerators; or investments involving business angels and 60% in funds which have a focus on investments into expansion capital, replacement capital, mezzanine and buy-out stage or other similar “growth” investments.
TGIF has reached its first closing with EUR 200 million commitments by the Undersecretariat of Treasury (EUR 60 million), SME Development Organisation of Turkey (KOSGEB) (EUR 60 million), the Industrial Development Bank of Turkey (TSKB) (EUR 20 million) and the European Investment Fund (EIF) (EUR 60 million). EIF is also adviser to TGIF.
Source: European Investment Fund Press Release