New statement from Minister Şimşek: We anticipate more foreign capital entering our country

Minister of Treasury and Finance Mehmet Şimşek made an assessment regarding the new regulation to be implemented in the venture capital sector.

Stating that a number of changes will be made to the venture capital investment fund legislation, Şimşek said that they are implementing decisions taken within the scope of the action plan of the Coordination Council for the Improvement of the Investment Environment in order to facilitate foreign investors' investments 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."

'WE ANTICIPATE MORE FOREIGN CAPITAL ENTERING OUR COUNTRY'

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 anticipate more foreign capital 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 have 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: 12punto