It was back in 2007 that the Istanbul Venture Capital Initiative (iVCi), Türkiye’s first ever dedicated fund-of-funds, was set up with the guidance of the European Investment Fund (EIF). The desire for a successor fund was signaled by the iVCi investors during 2012, when the investment period came to an end.

Capitalising on the experience of the iVCi as a pilot programme and its deployment, the EIF has continued to play a leading role in nurturing the VC and PE landscape in Türkiye by helping to set up and advising also the new Turkish Growth and Innovation Facility (TGIF).

The two facilities - jointly known as Turkish Investment Initiative (TII) - aimed to fulfill one mission: to provide, and mobilise, access to finance to Turkish companies. Today we know it has achieved its purpose, by being a catalyst for the development of the risk capital industry in Türkiye through investments in independently managed funds and co-investments.

BEYOND THE NUMBERS

TII has been a game changer in many ways. These are only 3 achievements we are proud of - beyond the numbers:

  • A true catalyst in the venture capital and private equity ecosystem of Türkiye since 2007.
  • Reaching a leverage of more than 10x on the public funds committed by the initial partners.
  • Acting as a cornerstone investor, and supporting both established and first- time teams.

GOVERNANCE

The TII and its sub-funds are governed by a Board of Directors composed of representatives of the investors: KOSGEB - the Small and Medium Enterprises Development Organisation, TSKB - the Industrial Development Bank of Türkiye, TKYB - the Development Investment Bank of Türkiye , the Republic of Türkiye Ministry of Treasury and Finance, and the EIF.

The Board has delegated its investment decisions in respect of the iVCi and the TGIF to an Investment Committee (IC) for each facility. Each Investment Committee has a majority of independent members.

The IC has no remit to initiate operations and is taking decisions on the basis of investment proposals from the EIF - the sole Adviser to both iVCi and TGIF.

The Directors are appointed by the General Meeting of the TII investors. All powers not expressly reserved by law to the General Meeting fall within the competence of the Board.

Finally, there is an Advisory Board for each facility that is consulted on general investment policies and guidelines, prospective investment sectors, valuation issues and possible conflicts of interest.

Across all programmes advised by the EIF, we are promoting best market practice and follow the rule book of procedures applicable to EIF operations, including transparency, accountability, and acting in good faith according to legal and other obligations.

UNICORNS

in the TII portfolio

FOUR INVESTEE COMPANIES SUPPORTED BY THE TURKISH INVESTMENT INITIATIVE HAVE ACHIEVED UNICORN STATUS.

At portfolio level, repayments to the investors had already exceeded the amounts drawn: EUR 440.70 million as revenues (from iVCi that is currently at the phase of distributing carry and EUR 27.27 from TGIF), and EUR 324.49 million drawn (for both iVCi and TGIF).

From the outset, both sub-funds of the TII have been perceived as powerful market development tools with solid foundations and a true public-private partnership. We thank our funding and co-operating partners for their support and additional commitments. The investment activity is still on-going. The results achieved so far have been both tangible and visible. Now it's time to look further ahead: we are eager to share more positive news in the years to come.