Turkey Development Fund

The Turkey Development Fund (Türkiye Kalkınma Fonu, TKF) is a pivotal institution established by Presidential Decree No. 2783 in 2020, with the strategic mandate to bolster Turkey's burgeoning entrepreneurship ecosystem. Headquartered in Umraniye, Istanbul, TKF's core mission is to facilitate the growth of "new generation startups" and high-potential enterprises, thereby contributing to the nation's economic development and innovation capacity. While its stated aim includes direct investment in startups, its primary and most publicized mode of operation involves acting as a significant fund-of-funds, channeling capital into other venture capital funds that, in turn, invest directly into promising companies.

A prime example of its operational strategy is the Technology and Innovation Fund (Teknoloji ve İnovasyon Fonu, TIF), one of the sub-funds managed by TKF. As of late 2023, the TIF had committed a substantial 1.5 billion Turkish Lira (approximately $50 million USD) across 10 distinct venture capital funds. This strategic allocation underscores TKF's role in mobilizing significant private and public capital, creating a multiplier effect within the Turkish startup landscape. By investing in these specialized VC funds, TKF aims to ensure that a broad spectrum of innovative companies, from early-stage to growth-stage, receive the necessary financial backing and strategic support to scale.

TKF's establishment marks a significant governmental commitment to fostering a vibrant and competitive startup environment in Turkey. Through its multi-faceted approach, predominantly as a limited partner in various VC funds, it plays a crucial role in de-risking investments for private capital and encouraging the formation of new investment vehicles. This indirect yet powerful influence helps to bridge funding gaps, accelerate technological advancements, and cultivate a robust pipeline of innovative enterprises, aligning with its overarching goal of developing a dynamic and resilient enterprise ecosystem.