G43 Venture Capital
The project, which is developed together with European Investment Fund, creates venture capital investment to enterprises with a high growth potential. Supported by Istanbul Venture Capital Initiative, the project aims to direct at least 50% of the investment to GAP region and the other 50% to the regions where income per capita is less than 75% of the national average.
European Investment Fund transfers project funds to SMEs via ‘financial intermediaries’. Through Abraaj Group as the authorised independent fund manager it is planned to invest in 5-6 enterprises in the targeted region with 20 million Euro fund.
Within the project, fund managers will not only provide capital to SMEs, but they will also add value on a larger scale such as helping them to acquire professional management processes so that they can further develop in a competitive environment and building international business contacts.
There are two important criteria for benefiting from G43 Anatolian Venture Capital Fund that will be active until the end of 2017:
- Businesses should have less than 250 employees and the turnover should be less than 50 million Euro or balance sheet size should be less than 43 million Euro,
- Businesses should be located or operating in those 43 provinces where per capita income is 75% less than the average of Turkey.
Reviewing SMEs that comply with these broad criteria, the independent fund manager focuses on companies presenting high growth potential. The investment decision is taken as a result of detailed commercial, financial and legal analyses. Through this /project investment has been made to two companies in Kayseri and Şanlıurfa until today.
Venture capital fund established within the framework of Competitive Sectors Program is essential for SMEs operating in the emerging regions of Turkey, in particular for those that have a smart idea, wish to further improve and bring in new technologies and have a potential for improvement.