The Minister of Treasury and Finance, Mehmet Şimşek, has commented on the upcoming new regulations in the venture capital sector.
Shimşek stated that there will be several changes to the regulations concerning venture capital investment funds. He mentioned that they are implementing decisions taken under the Action Plan of the Investment Environment Improvement Coordination Council to facilitate foreign investors’ ability to invest in Turkey and enhance collaborations with them.
Regarding the planned regulation, Shimşek said, “Our venture capital investment funds will now be able to invest in venture companies established abroad, as long as more than half of their investments are in Turkey. We are paving the way for investments through agreements that grant the right to become partners in venture companies yet to be established.”
### NEW FINANCING METHOD
He emphasized that they will introduce a new financing instrument to the capital markets, stating, “With the changes we will make, we expect more foreign resources to enter our country’s venture ecosystem.”
Shemşek also noted that instead of direct investments, they would allow risk distribution and investment diversification through venture capital investment funds.
He mentioned that they would enable investments in venture companies that have previously received funding and completed an investment round. “One of the advantages of this regulation is the ‘umbrella fund’ structure, which will significantly shorten the establishment process of new funds,” he concluded.
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
