Turkish VC Firm Adopts Global FoF Strategy
Turkish venture firm Finberg has evolved its strategy to include a fund-of-funds that invests in vehicles across North America, the UK, and Asia. The firm, which has deployed over $100M across 48 direct investments, uses its 17 fund investments to build cross-border knowledge flows and relationships. This model indicates a maturation of the Turkish VC scene, aiming to connect local founders with global capital and standards.
- Finberg, a subsidiary of Fibabanka, was one of the first retail-banking-led corporate venture capital funds in Turkey. It now manages multiple vehicles, including the Finberg Yıldız Venture Capital Investment Fund, which has a size of ₺1.5 billion and invests in sectors like finance, energy, software, and gaming. - The Turkish government actively promotes the venture capital ecosystem through various initiatives. This includes the Ministry of Industry and Technology supporting VC funds and the "Turcorn 100" program, which is designed to help startups with the potential to reach a $1 billion valuation. The Treasury has also previously created a $250 million fund to invest in a "fund of funds." - In 2024, the Turkish startup ecosystem saw a significant increase in total deal volume, reaching a record-breaking $2.6 billion, a substantial rise from $497 million in 2023. The number of deals also grew from 297 to 331 in the same period. - The first quarter of 2025 recorded $70.2 million in total deal volume for Turkish startups, with early-stage investments making up the largest share at 61%. Fintech was the leading vertical with 12 deals, followed by artificial intelligence with nine. - Foreign investors play a crucial role in the Turkish startup market, participating in 44% of all investment rounds in 2024. While local investors were involved in more transactions in Q1 2025, foreign investors contributed a significantly larger share of the deal volume at 61%. - Pre-money valuations for seed-stage startups in Turkey have historically been about 22% lower than in Europe and 61% lower than in the US, presenting a notable opportunity for early-stage investors. - Macroeconomic factors such as currency volatility and inflation present ongoing challenges for the Turkish startup ecosystem. These issues can influence foreign investor sentiment and create a more cautious investment approach. - A 2024 regulation now allows Turkish Venture Capital Investment Funds (VCIFs) to invest in startups operating both in Turkey and abroad, with a particular focus on ventures led by the Turkish diaspora.
