'International venture capital funds eager to invest in Türkiye'
Industry and Technology Minister Mehmet Fatih Kacır (L) attends the Tech.eu Summit London 2024, London, U.K., May 16, 2024. (AA Photo)


International venture capital funds are eager to invest in Türkiye, according to Industry and Technology Minister Mehmet Fatih Kacır, who highlighted the advanced level of Turkish startups and strategic initiatives in a number of areas.

Kacır, who was in London to attend a series of programs, answered questions Friday from the Turkish media after meeting with venture capital fund managers.

He highlighted Türkiye's burgeoning capabilities and strategic initiatives in key areas such as health technologies, green transformation technologies, digital transformation technologies and artificial intelligence.

Kacir emphasized the advanced level achieved by Turkish technology startups, particularly in next-generation mobility technologies – a crucial component of the green transformation.

"I shared Türkiye's capacity in these areas extensively," he said. "Investors expressed their desire to increase their presence in our country."

He pointed out that Türkiye's approach serves as a global example of how public resources can be effectively utilized to accelerate technology startups.

"Our work demonstrates how public resources are being used and evaluated to support technology startups at a level rarely seen worldwide," he said.

"These initiatives have already borne fruit, with technology startups in Türkiye receiving significantly larger investments compared to previous periods. From 2010 to 2020, the annual investment in Turkish tech companies and startups was approximately $100 million. However, between 2020 and 2023, this figure skyrocketed to $4 billion over three years," he explained.

The influx of capital has accelerated the emergence of billion-dollar unicorns in Türkiye – affectionately termed "Turcorns."

"Today, we have several tech startups valued at over ahttps://www.dailysabah.com/business/economy/turkiye-upbeat-amid-record-rise-in-fx-reserves-steep-cds-fall billion dollars in sectors such as gaming, e-commerce, software and fintech," said Kacır.

Looking ahead, he outlined an ambitious vision for Türkiye's technology and entrepreneurship ecosystem.

By 2030, Türkiye aims to foster the creation of 100,000 technology startups, with 100 achieving Turcorn status.

"To achieve this, we must strengthen our international collaborations and more effectively communicate and promote the country's success stories in technology entrepreneurship to the world," Kacır emphasized.

London, a global hub for venture capital and asset funds, hosts more than 500 capital funds, which annually allocate substantial resources to technology and entrepreneurship.

"In the coming period, we will enhance our relationships and communication with these funds. We will organize similar events in Türkiye together with them and continue to accelerate the growth of the country's technological startups," he said.

Decline in CDS shows economy on right track

A significant part of the discussions also focused on Türkiye's innovation-friendly regulatory environment.

Kacır highlighted the success of the fintech startups in Türkiye, attributing it to the public sector's innovative and supportive approach.

"We talked at length about how the public sector's innovative and innovation-friendly approach has been crucial to the success of fintech startups in Türkiye," he said.

In addition, the minister mentioned new legislation on cryptocurrency assets being drafted in Parliament.

"All these approaches demonstrate how strongly Türkiye hosts innovative technologies and how it has achieved the most advanced level of transformation," he added.

The improvement of Türkiye's macroeconomic indicators was also a key topic of discussion.

Kacır highlighted the rapid decline in credit default swaps (CDS), the risk premiums of the Treasury stocks, as an important sign that the Turkish economy is on the right track.

"We foresee a significant acceleration of investments in Türkiye in the coming period," he said, adding that the sentiment is shared by international investors and venture capital fund managers.