Turkey Development and Investment Bank subsidiary, the Turkey Development Fund (TKF), is set to inject significant financial resources into the country’s entrepreneurship sector. TKF’s Head, Altuğ, spoke with AA News, detailing recent initiatives that have allowed TKF to establish and manage private funds within regulatory guidelines while overseeing venture capital funds under the Capital Markets Board.
Altuğ shared that TKF currently manages five private funds and three venture capital investment funds, collectively amounting to approximately 4.3 billion liras. With ongoing fundraising efforts, the fund expects to exceed 5 billion liras by the end of the year. TKF’s investment strategy is broad, encompassing a wide range of sectors, yet specific industries like cybersecurity, fintech, global-focused mobility technologies, healthcare technologies, gaming, biotechnology, and artificial intelligence remain priorities.
In private equity, TKF targets SMEs with import substitution or export potential, aiming to contribute to Turkey’s current account balance. In venture capital, TKF typically invests $250,000 to $1 million in early-stage companies with high growth and global potential, while private equity investments can reach up to $5 million, focusing on manufacturing-centric and export-oriented SMEs.
“Direct Investments in 25 Companies, Allocating $18 Million So Far”
Altuğ explained that TKF has already allocated approximately $30 million out of a total of $70-75 million available for investments, leaving an additional $40-45 million for direct investments. With a newly established Upper Fund, TKF now has around $90 million ready for entrepreneurship ecosystem investments. So far, the fund has directed $18 million to 25 companies and committed about $11.5 million to five venture capital funds.
Applications to the Upper Fund, with over 25 submissions currently under review, are ongoing, with TKF expecting to commit to 2-4 funds by year-end. The Upper Fund’s entire resources are earmarked for new investments, signaling strong continued support for Turkey’s entrepreneurial ecosystem.
New “Impact Fund” to Launch in 2025
Looking forward, TKF is planning to launch an Impact Fund in 2025, aligning with Turkey Development and Investment Bank’s mission and international best practices. TKF’s initiatives are aimed at bolstering Turkey’s position as an international entrepreneurship hub, with notable progress despite a challenging global economic climate. The fund has supported substantial investment rounds this year and recently helped a portfolio company, Livzym, close an $11 million round.
As TKF marks its fifth anniversary, Altuğ highlighted its impactful role in the ecosystem. Direct investments and collaborations, such as the BiGG Fund established with TÜBİTAK in 2023, have strengthened TKF’s position, making Turkey a leading pre-seed investment country in Europe. TKF manages resources for over 140 institutions, corporates, and individual investors, establishing itself as a central force supporting active investments from pre-seed to Series A stages.
In 2025, TKF anticipates continued growth, driven by its skilled team, broad investor base, and strong government partnerships. This year will mark a maturation phase, where TKF will further solidify its role as a pillar in Turkey’s venture capital ecosystem.
