Venture capital investment funds, particularly in Türkiye and the surrounding region, persist in directing investments despite challenging economic conditions worldwide

Türkiye’s entrepreneurial ecosystem continues to gain momentum with the initiation of new investment funds despite the global inflationary environment. Venture capital investment funds, particularly in Türkiye and the surrounding region, persist in directing investments amid challenging economic conditions worldwide.

Türkiye’s first corporate venture capital fund, 212, has established its third fund to reach 70 million euros ($75.46 million). Focused on the Turkish market, 212 seeks to sustain investments in ventures operating in Türkiye, Central and Eastern Europe, the Middle East and North Africa. Furthermore, the fund will extend support to entrepreneurs who have established companies in advanced markets but maintain links with their home countries.

Numan Numan, co-founder of 212, expressed their commitment to replicating the success of the first two funds.

“The criteria, which we refer to as ‘dragon,’ emphasizing the return on investment at exit, remains a vital benchmark. With this fund, we broaden our focus to a more extensive geography, perceiving stronger and more abundant opportunities than ever before,” said Numan.

“We will especially focus more on entrepreneurs who have founded companies in advanced markets, the so-called diaspora, and who maintained ties with their home countries. Additionally, our venture capital investment fund, Simya VC, which was initiated last year to invest in early-stage ventures, will also support our new fund, providing greater access to entrepreneurs. Moreover, we will persist in our investments with Türkiye’s first vertical deep technology fund, 212 NexT, which was launched in collaboration with Akkök Holding recently.”

New horizon for game ventures

Meanwhile, Hedef Portföy and WePlay Ventures have jointly established the WePlay venture capital investment fund, which received a green light from the Capital Markets Board (SPK).

The VCIF established with the single asset model will become a partner with the gaming investment company WePlay Ventures, which has 38 different gaming ventures in its portfolio from eight countries in Türkiye, Europe and Central Asia.

Operational since 2020 with offices in eight countries, WePlay Ventures is among the most active game investment companies in Europe and Central Asia. The company attracted attention last year with a successful exit from Udo Games after an 11-month investment.

Focusing on early-stage gaming companies in mobile, PC, console and Web3 areas, WePlay Ventures boasts a portfolio of 38 game ventures from eight countries. Through its acceleration program, WePlay HUB, introduced last year, the company has started to provide very serious support for early-stage game ventures in technical and management areas and rapidly expanded its portfolio.

New success stories

212, which shares its global and local experiences in the areas that ventures need alongside investment support, will continue to invest in globally growing technology companies in the B2B field in Türkiye, Central and Eastern Europe, and the Middle East and North Africa Region with the new fund.

It will also continue to support entrepreneurs who have established their companies in developed markets and have ties to their own countries.

“Since our inception, we have made significant contributions to the entrepreneurship ecosystem with our first two funds and set several milestones. With 29 investments to date, our managed assets have exceeded 100 million euros. We take pride in being the institutional investor in Türkiye’s first and biggest fintech exit, Iyzico and the first unicorn in the software field, Insider,” said Numan.

“Our commitment goes beyond providing funding; we also contribute to the transition of ventures to the next stage. Our expanding network over the past 12 years has brought significant benefits to the ventures in our portfolio. With our third fund, we are determined to create success stories just like we did with the first two funds. Approximately 60% of our new fund comes from investors who have been with us in previous funds, which is highly valuable to us,” he noted.

Continued opportunities

Ali Karabey, co-founder of 212, emphasized that with their 12 years of experience, they offer dynamic funds tailored to investors by understanding market needs.

“In addition to the traditional fund management model, we also provide new investment opportunities for investors seeking high returns by taking risks. We establish special purpose vehicles (SPVs) to provide more support to successful portfolio companies and enable investors to make follow-on investments,” said Karabey.

“Thanks to the flexibility we demonstrate in responding to market conditions, our investors have the opportunity to have a higher stake in the growth potential of successful companies. We will continue to provide opportunities not only for ventures but also for our investors,” he noted.

Investing in gaming ventures

WePlay VCIF is aimed at reaching a size of 10 million euros. The single-asset VCIF model, garnering significant interest in recent years, offers investors the opportunity to join WePlay Ventures’ existing portfolio.

WePlay Ventures, with WePlay VCIF, aims to expand its operations in Europe and Central Asia to 18 countries and add more than 350 gaming ventures to its portfolio within four years, aspiring to become the most active gaming investment company in the region.

Bora Koçyiğit, managing partner of WePlay Ventures, highlighted the company’s contributions to the gaming ecosystem.

“Since 2020, WePlay Ventures has made significant contributions to the development of the gaming ecosystem in Türkiye and the region, adding 38 game ventures to our portfolio. Besides financial support, we provide strategic support to ventures, enabling them to scale much faster. With WePlay VCIF, we aim to reach early-stage gaming ventures not only in Türkiye but also in Europe and Central Asia, targeting over 350 investments,” said Koçyiğit.

Ercan Güner, general manager of Hedef Portfolio, expressed confidence in the joint venture with WePlay.

“Within the framework of our vision to support the entrepreneurship ecosystem, we have decided to collaborate with WePlay Ventures, which makes a significant contribution to the gaming world. We believe that with the joint initiative of WePlay and Hedef Portfolio, WePlay VCIF will be a game-changer in the global gaming sector, said Güner.

“The gaming industry is one of the world’s largest sectors with a massive market size of $200 billion. It is also the fastest-growing sector in the world, with 3.2 billion active gamers and a 248% growth trend. We are pleased to invest in a promising and innovative sector presenting WePlay GSYF to all investors under the 0% tax and 0% withholding tax regime.”

Entrepreneurial marathon gathers 150 innovators from quake region

Entrepreneurship is crucial in addressing local challenges in 11 Turkish provinces devastated by the earthquakes earlier this year.

The Sabancı Hatay Incubation Center, established in collaboration with the Habitat Association and Sabancı Group companies, including Brisa, Kordsa, Temsa and Teknosa, continues to nurture the entrepreneurial spirit in the quake-affected areas.

Aiming to integrate local entrepreneurs into the Turkish and global entrepreneurship ecosystem, the center hosted a major event between Nov. 24-26.

The Entrepreneurship Marathon, with nearly 150 applicants from Hatay and Adana, was organized in collaboration with the Habitat Association, supported by Sabancı Volunteers and Viveka. Teams participating in the marathon received training on sustainable entrepreneurship, design thinking, customer profiling, user scenario creation, business model canvas, storytelling, brand creation and presentation techniques from expert mentors.

5 teams advance to finals

Themed “Solutions for Local Issues After Disasters,” the Sabancı Hatay Incubation Center Entrepreneurship Marathon lasted 48 hours.

Throughout the event, 23 teams designed various projects using the power of technology in disaster management to create a safer, more resilient, and inclusive society. The teams “Guideverse,” “Hatay’ı Yaşat,” “Circular Trade,” “Makarnaapp,” and “Koza” successfully advanced to the second stage and earned the right to attend an acceleration program.

Grants of $3,450

Apart from the five teams advancing to the second stage, all other entrepreneurs continue to develop their business ideas in the shared workspace at the Sabancı Hatay Incubation Center. The finalist teams, however, will have the opportunity to further enhance and commercialize their ideas during a three-week online acceleration program.

Under the program, teams will receive training and mentorship from Sabancı Group executives, Sabancı Volunteers and the Habitat Association, covering various aspects from marketing and product development to legal processes.

Following the program, during the Demo Day, the teams will present their projects for evaluation by the jury. Two successful teams with the most innovative ideas will be rewarded with TL 100,000 ($3,450) in grant support.

TT Ventures spotlights startup investment strategy

In a bid to drive innovation, Türk Telekom, the company behind Türkiye’s first startup acceleration program, PILOT, continues to bolster its investments through its venture capital arm.

TT Ventures is strategically investing in startups that align with its vision, leveraging its diverse portfolio and support mechanisms to contribute to the growth and success of innovative enterprises in Türkiye and beyond.

The firm recently disclosed the focal points and evaluation criteria that guide its investments in startups.

The venture capital firm emphasized four critical criteria in its evaluation process: team, product, market, and business model. TT Ventures underscores the importance of experienced teams with strong communication skills, bold objectives and a passion for their work.

According to TT Ventures, its primary investment focus lies in startups that can synergize with the Türk Telekom Group, aiming to scale their businesses rapidly and possessing high growth potential. The firm employs flexible methods to invest in such ventures, with the overarching goal of providing sustainable shareholder value.

Broad investment portfolio

TT Ventures has, until now, invested in startups across various sectors, including education, health care and software. Yet, its expansive investment focus extends beyond these realms to cover 21 different areas.

The firm is particularly interested in 5G technologies, “gamification” technologies, artificial intelligence, retail technologies, digital products and services, regulatory technologies, gaming and esports, and health technologies.

Apart from direct investment in startups, TT Ventures offers support in expanding to global markets, providing marketing communication assistance, and aiding in rapid business growth. This multifaceted approach underscores the firm’s commitment to fostering innovation and sustainable development within the entrepreneurial ecosystem.

Source: Daily Sabah

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Türkiye’s economy chief along with Turkish officials kicked off Monday the Gulf tour during which he is engaging with investors from the United Arab Emirates (UAE), Qatar and Saudi Arabia to attract foreign capital and bolster the country’s policy overhaul.

Starting with the visit to Abu Dhabi, Treasury and Finance Minister Mehmet Şimşek arrived in Qatar’s capital Doha on Tuesday to attend the “Türkiye Century Investment Receptions.”

Şimşek, a highly respected technocrat with Wall Street experience, was appointed by President Recep Tayyip Erdoğan in June to lead a shift to more convenient economic policies.

“Firstly, we had a productive meeting with HE Mohamed Hassan Al Suwaidi, the UAE Minister of Investment,” Şimşek wrote on X, formerly Twitter.

“In our second stop, Qatar, we met with Mr. Ali bin Ahmed Al Kuwari, Minister of Finance of Qatar,” he added.

He also noted they met Mohammed Ali Al Khouri, the secretary-general of Expo Doha 2023, and visited “Türkiye Center,” as well as that they joined the investment program in Qatari capital where they conveyed the investment opportunities in Türkiye to over 200 investors and representatives from the business world.

The event, themed “Türkiye: Your Resilient Investment Partner,” was co-hosted by the Turkish Embassy in Qatar, the Investment Office of Türkiye and the Qatari Businessman Association (QBA).

Gathering the business communities from Türkiye and Qatar, the event at the residence of the Turkish Ambassador in Doha Mehmet Mustafa Göksu provided a platform to explore bilateral relations and discuss investment opportunities in both countries.

Speaking at the event Şimşek highlighted the “excellent political relations” between Türkiye and Qatar and said, “I think it is up to us, the policymakers, but also up to the business community to leverage these excellent political relations in deepening our ties to trade and investments.”

Ahmet Burak Dağlıoğlu, the head of the Investment Office of the Presidency of the Republic of Türkiye, said that Türkiye has become a regional hub in its region in the last two decades.

‘Foreign investors interest’

Foreign investors attach importance to Türkiye’s structural reforms, and this interest will translate into direct investments in the country Dağlıoğlu said in his interview with Anadolu Agency (AA).

The economic administration actively engages with investors, presenting the new economic program to reverse the long trend of foreign capital outflow. Recently, there has been a notable surge in foreign investors’ interest in the Turkish markets.

Taking part at the reception in Doha, Dağlıoğlu said investors are closely following Türkiye’s moves and reforms in the field of digitalization and sustainability to get a larger share of supply chains.

Such receptions are bringing together investors in numerous world capitals to boost Türkiye’s share of global investments, he told AA.

“In our second century, which we will start under the leadership of our president, we will explain what our goals, what is our vision, what the ‘Century of Türkiye’ means, to investors,” he stressed.

The receptions began in London, following on to Asia and then the U.S., he recalled, adding that they have now reached the Gulf countries.

“Especially the shaping of supply chains creates investment opportunities for us, Türkiye has a great advantage in discussions of sustainability, we are a country that was prepared very early for this race,” he noted.

Underscoring the digital economy is also a top international concern Dağlıoğlu said they would continue the promotional tours around these three themes – supply chains, sustainability and digital economy – in the coming days.

Commenting on Qatari investments in Türkiye, he said that there are important investments in the finance, infrastructure, technology, tourism and manufacturing industries.

Over 200 companies with Qatari capital are operating in Türkiye with a total investment of over $3 billion, he said.

“We see that investment interest continues in similar sectors,” he added.

All countries are trying to shape their investment climate in parallel with global trends, he said, stressing that Türkiye has always kept its investment climate up to date and created an investor-friendly investment climate with strong reform movements under the president’s leadership.

“Türkiye has a very competent labor pool with high productivity, this is an advantage for both local companies and international investors,” he noted.

Dağlıoğlu said when international investors invest in Türkiye, they not only consider the domestic market of 85 million people, but thanks to its strong infrastructure and superstructure, logistical accessibility to neighboring countries, and critical investments from energy to health and education.

“Our position as a geographical regional hub is also a factor that creates a positive difference for investors,” he added.

Source: Daily Sabah

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Top Wall Street financiers struck a pessimistic tone about the global economy at a flagship meeting held in Saudi Arabia aimed at deal brokering as a conflict between Israel and Palestinian resistance group Hamas further unfolds.

The annual event is typically used by attendees as an opportunity to build relationships with some of Saudi Arabia’s biggest companies and its $778 billion sovereign wealth fund, drawn by the promise of deals as the kingdom embarks on an ambitious reform plan to wean its economy off oil.

But an escalation between Hamas and Israel into a broader conflict overshadowed the event dubbed “Davos in the Desert,” a nod to the annual gathering of world leaders and corporate bosses in the Swiss Alps.

Geopolitical tensions heightened by the Middle East conflict pose the biggest threat to the world economy, World Bank President Ajay Banga said.

“There is so much going on in the world and geopolitics in the wars that you’re seeing and what just happened recently in Israel and Gaza. At the end of the day, when you put all this together, I think the impact on economic development is even more serious,” Banga said.

Although the globe’s top financiers dwelt little on the conflict, speaking about topics such as artificial intelligence (AI), the economic fallout of war combined with record debts as rates rise created a bleak backdrop.

“There’s no question if these things are not resolved, it probably means more global terrorism, which means more insecurity, which means society is going to be fearful … and … we see contractions in our economies,” BlackRock Chair and CEO Laurence Fink said.

Fink was flanked on a panel at the Future Investment Initiative (FII) conference by bank CEOs, including Goldman Sachs’ David Solomon, JPMorgan’s Jamie Dimon and Citi’s Jane Fraser. They spoke about topics including women in the workplace but also the implications of rising interest rates.

Ray Dalio, founder of hedge fund Bridgewater Associates, said he was pessimistic.

“If you take the time horizon, the monetary policies that we’re going to see and so on will have greater effects on the world,” Dalio said. “And you look at the world gaps, so it’s difficult to be optimistic on that.”

HSBC Group CEO Noel Quinn also warned of the perils of heavy government debts. “I’m concerned about a tipping point on fiscal deficits,” he said. “When it comes, it will come fast and I think there are a number of economies in the world where there could be a tipping point and it will hit hard.”

Standard Chartered CEO Bill Winters said he hoped wars in Europe and the Middle East would remain contained, describing interest rates as “much more pressing.”

‘Unrelenting’

The remarks come as Israel’s military prepared for “unrelenting attacks” to dismantle Hamas. Former U.S. President Obama warned that “any Israeli military strategy that ignores the human costs could ultimately backfire.”

The conflict could upset the stability of the Middle East just as regional powerhouse Saudi Arabia pours hundreds of billions of dollars into a vast economic transformation plan.

Saudi Arabia is putting U.S.-backed plans to normalize ties with Israel on ice, two sources familiar with Riyadh’s thinking said, signaling a rapid rethinking of its foreign policy priorities as war rages.

But the finance chiefs were mostly focused on business.

The last year has seen Saudi Arabia spend billions on companies, from sports to gaming to aviation. This year, Saudi Telecom Corp took a nearly 10% stake in Spain’s Telefonica.

“While today’s world seems uncertain, we continue with our mandate to inspire … the future of business and future-proof our societies to create a more stable and resilient world order,” Yasser al-Rumayyan, governor of Saudi Arabia’s Sovereign Public Investment Fund, told the conference.

Goldman Sachs’ Salomon addressed the potential for more dealmaking after this week’s announcement by U.S. energy giant Chevron that it had agreed to buy Hess for $53 billion.

“Over time, scale matters enormously in the competitive nature of global businesses, and so M&A activity can ebb and flow and as people become more certain of the environment,” he said.

Stephen Schwarzman, co-founder, chairperson and CEO of the Blackstone Group, flagged the threat to investors in office buildings, now often empty in the wake of the pandemic.

“Say you have 30% unused space in office buildings; that means those office buildings are not survivable as economic entities. So that’s going to have a very bad ending,” Schwarzman said.

More than 5,000 people registered to attend this year’s Future Investment Initiative and only a handful withdrew due to current events.

Saudi Crown Prince Mohammed bin Salman has sought to lift the kingdom’s profile to secure investment and trade alliances, seeking dialogue with former regional foes and pivoting to Eastern partners amid strains with U.S. President Joe Biden’s administration. This year’s forum is meant to demonstrate that eastward shift. There will be 70 speakers from Asia, of whom 40 will be Chinese, FII Institute CEO Richard Attias told Reuters.

Saudi Arabia is halfway through an ambitious economic transformation plan – Vision 2030 – to wean the economy off oil by creating new industries, generating jobs for citizens, and luring foreign capital and talent.

FII is partially aimed at attracting investment to fund this, a daunting task as total foreign investment flows in this year’s second quarter were down.

Source: Daily Sabah

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Kenges Rakishev, international entrepreneur, philanthropist and former special envoy of the Kazakh government, is leading the charge for an upcoming Nasdaq listing of Borealis Foods Inc., a fast-growing food tech company imbued with a mission to serve growing consumer needs. Rakishev intends to tackle global food challenges by developing nutritious, sustainable, and affordable ready-to-eat meals. This product is currently on sale in US and Canadian markets, with ambitious, imminent plans for a European market invasion. The Company stands at the forefront of innovation, having pioneered the world’s first plant-based ramen meal on a mass scale, boasting 20 grams of comprehensive protein per serving.

Bear in mind that passing the multiple hurdles necessary for approval of food-grade imports in western countries is a major challenge, and an expensive one. Matching food and pharmaceutical standards is exacting, but Borealis has done it.

Rakishev serves as Non-Executive Chairman of Central Asia’s first “Special Purpose Acquisition Company” (SPAC), listed as the “Oxus Acquisition Corp.” (NASDAQ:OXUS) IPO. Under Rakishev’s leadership, together with the acumen and dedication of CEO Kanat Mynzhanov, the firm has successfully navigated Oxus Acquisition through the complexities of a SPAC formation and listing, setting the stage for its upcoming partnership with Borealis Foods, set to go public before 4Q 2023.

Following the successful completion of Central Asia’s first Special Purpose Acquisition Company (SPAC), Oxus Acquisition Corp.’s IPO, Non-Executive Chairman Kenges Rakishev aims for upcoming Nasdaq listing of Borealis Foods Inc. Rakishev’s leadership roles have not been confined to Oxus Acquisition alone. Since March 2021, he has served as the President of Fincraft Group LLP, a diversified holding company listed on the Kazakhstan Stock Exchange.

This listing marks a significant milestone for the Central Asian business landscape and a landmark achievement in Rakishev’s investment career.

With a significant history of acquiring and investing in over 50 businesses in industries as varied as metals & mining, oil, petrochemicals, banking, fintech, information technology, ecommerce, logistics and insurance, Rakishev’s diverse investment portfolio includes some ten global-scale companies, demonstrating his knack for successfully identifying and driving growth in businesses anywhere.

Rakishev’s leadership roles have not been confined to Oxus Acquisition alone. Since March 2021, he has served as the President of Fincraft Group LLP, a diversified holding company listed on the Kazakhstan Stock Exchange. Rakishev has also been the Chairman of the Board of Fincraft Resources JSC since September 2008, a diversified holding focused on natural resources and disruptive technology industries. Furthermore, up until December 31, 2021 he held leadership positions at Battery Metals Technologies Ltd., an electric vehicle battery metals firm.

From 2013 to May 2018, Rakishev served as a Non-executive Director of Central Asia Metals Plc and was the controlling shareholder and Chairman of Kazkommertsbank JSC, the largest Kazakh commercial bank, from March 2015 to June 2017.

According to Forbes national rating, Rakishev burst into the ranks of the “Top-50 businessman of Kazakhstan” in 2013. Now he has ascended to the “Top-10”, keeping his highly diversified empire under control.

Rakishev has committed his time and energy to a variety of philanthropic activities, alongside his wife Aselle Tasmagambetova, through their Saby Foundation, the oldest charity fund in Kazakhstan, established in 2002. Saby supports young people seeking access to optimal education and career opportunities, as well as healthcare upgrading in Kazakhstan; it also empowers young entrepreneurs and business owners to develop their ventures. In 2020, Saby Foundation joined an ambitious battle to save the endangered Caspian seal from extinction.

Source

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According to Ozon, the project, set to be completed within 12 months, will cover an expansive area of 42,000 square meters and is expected to generate 2,000 new job opportunities in the region.

Ozon’s business is thriving in Kazakhstan, and the logistics complex will be expanded to accommodate increasing demand from sellers and buyers for the platform’s services. The new facility will act as a fulfilment center in Almaty, near to the Chinese border, offering a complete package of services for online orders from local sellers. From accepting goods for storage to packaging and dispatching parcels to customers, the hub will efficiently cater to the growing e-commerce landscape in the country.

Ozon’s strategic move to establish this logistics hub comes as a response to the surging demand for its marketplace services in Kazakhstan. By providing a dedicated fulfilment center, the company aims to enhance its operational efficiency and meet the rising needs of sellers and buyers alike.

To bring this project to fruition, Ozon has partnered with Focus Logistics, a subsidiary of the prominent Kazakh construction group – Bazis.

Having commenced its operations in Kazakhstan in 2021, Ozon has been committed to expanding its logistical infrastructure in the region. Presently, the company operates two fulfilment centers and over 100 pickup and drop-off points in Kazakhstan. With ambitious plans in sight, Ozon intends to increase the number of pickup and drop-off points to 1,000 by the end of 2023.

Russia and Kazakhstan are both members of the Eurasian Economic Union (EAEU) Free Trade bloc. In 2022 the bilateral trade volume between Russia and Kazakhstan increased by US$2 billion reaching US$26 billion. Growth rates have been at rates of 10% plus with signs that this is also increasing.

Source: Silk Road Briefing

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Kenes Rakishev is one of the most influential people in Kazakhstan. Kenes is also a respected advisor to the government of Kazakhstan. Both he and his wife, Aselle Tasmagambetova are involved in philanthropy work and investments in the tech sectors. Kenes distinguished himself to help develop innovative projects.

His investments included Solarin, the new handphone developed by Sirin Labs, which was founded by Rakishev and his business partners. It integrates data encryption systems for calls. Rakishev also invested in Mobli and NetElement.

This tech-savvy serial investor was born on July 14, 1979, in the city of Almaty to a working-class family. His father, Hamit Koshanovich Rakishev was a prominent statesman of Kazakhstan. Kenes is a lawyer and economist by training and studied business in Oxford and London.

Besides his interests in mining, finance and IT, Rakishev also invested in defence industry start-ups.

He is reportedly the main investor in General Robotics Ltd. General Robotics recently announced the update of combat robot systems. New technological solutions will enable effective resistance against unmanned combat aerial vehicles.

In 2019 at the annual DSEI exhibition in the United Kingdom, representatives of the company pointed out that the anti-drone system developed by General Robotics dramatically displayed a higher performance in protecting key objects.

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