The International Finance Corporation (IFC), part of the World Bank Group, has announced a $2 million investment in Fund II of 500 Istanbul, a venture capital fund linked to 500 Startups and focused on early-stage technology companies. Focusing its financing on the private sector in emerging markets, IFC works with nearly 100 countries in which it has invested $31.5 billion during fiscal 2021.
The agreement will be part of the IFC Startup Catalyst program, established in 2016 to invest in tools that support entrepreneurs and their start-ups, to facilitate the development of technology ecosystems to reduce the digital divide.
“As the country with the fastest growing developer pool in the EMEA region, Turkey has highly skilled human capital,” said Enis Hulli, a partner of 500 Istanbul. Hulli also pointed out that investing in early-stage local teams provides outstanding returns for the global market.
80% to Turkey
IFC's $2 million investment will be dedicated to companies focused on information technology or engineering technology-based products across a variety of industries. In the statement made by IFC, it was stated that Fund II, with a target size of 30 million dollars, will be deployed 80 percent in Turkey and the remaining 20 percent in Ukraine, Romania and Bulgaria to support twenty-five early stage companies.
Arnaud Dupoizat, IFC Turkey Country Director, said, "Supporting the development of early-stage ecosystems, especially during the pandemic, is crucial to creating a consistent, high-quality investment opportunities project that venture capitalists depend on. IFC's investment in 500 Istanbul is the first Startup Catalyst in Southeast Europe. We will have funds," he said.
The IFC package will benefit from a €500,000 joint investment by the Women's Enterprise Finance Initiative (We-Fi). In the statement made by IFC, it was stated that "Turkey is one of the countries with the lowest female labor force participation rate among countries with similar income levels".
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