Mehmet Şimşek announces 'new financing instrument coming'

Minister of Treasury and Finance Mehmet Şimşek stated that they will introduce a new financing instrument to the capital markets, saying, "Our venture capital investment funds will now be able to invest in venture companies established abroad that have more than half of their investments in Turkey."

Minister Şimşek made an assessment regarding the new regulation to be implemented in the field of venture capital.

Stating that some changes will be made to the venture capital investment fund legislation, Şimşek said that they are implementing the decisions taken within the scope of the action plan of the Coordination Council for the Improvement of the Investment Environment in order to facilitate investments by foreign investors in Turkey and to develop cooperation with them.

Regarding the regulation to be made, Şimşek said, "Our venture capital investment funds will now be able to invest in venture companies established abroad that have more than half of their investments in Turkey.

We are paving the way for investments to be made through contracts that grant the right to become a partner in a venture company that has not yet been established in the long term," he said.

NEW FINANCING METHOD

Emphasizing that they will thus bring a new financing instrument to the capital markets, Şimşek used the expression, "With the change we will make, we foresee more foreign resources entering our country's venture ecosystem."

In addition to this, Şimşek stated that they will enable the diversification of investments by distributing risk through venture capital investment funds instead of direct investments. Stating that they will pave the way for investments to be made in venture companies that have previously received investment and closed their investment rounds, Şimşek assessed, "Thanks to the 'umbrella fund' structure, which is another advantage of this regulation, the establishment processes of new funds will be significantly shortened."

News Source: AA