Investment & Fund Management

The Turkish Growth and Innovation Fund (TGIF) was officially launched on May 12, 2016, in Istanbul, with the aim of supporting innovative and technology-oriented businesses in Turkey that exhibit rapid growth potential. This initiative was a collaboration between the European Investment Fund (EIF), the Undersecretariat of Treasury, the Small and Medium Enterprises Development Organization of Turkey (KOSGEB), and the Industrial Development Bank of Turkey (TSKB). The TGIF is designed to succeed the Istanbul Venture Capital Initiative (iVCi), which was Turkey's first fund-of-funds established in 2007.

The TGIF addresses the specific challenge of low venture capital investment per capita in Turkey, which is significantly lower compared to other countries. The fund aims to enhance access to finance for small and medium-sized enterprises (SMEs) with innovation and growth potential. With a total fund size of EUR 200 million, TGIF has secured commitments of EUR 60 million each from the Undersecretariat of Treasury, KOSGEB, and EIF, along with EUR 20 million from TSKB. The fund is structured to allocate 40% of its investments to seed, early-stage, and start-up businesses, while the remaining 60% will focus on expansion capital and growth investments.

The launch event featured prominent figures from Turkey's finance and entrepreneurship sectors, highlighting the importance of venture capital in fostering innovation. The TGIF is expected to provide a significant boost to the Turkish venture capital ecosystem, facilitating early-stage investments and supporting the growth of technology-oriented companies. This initiative is a strategic move to leverage Turkey's potential for venture capital investments and to create a more robust financial environment for SMEs.