ADQ, Turkey’s TWF launch $300mn tech fund to back high-growth startups

By Amirtha P S, Desk Reporter
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ADQ & TWF launches the 'Turkey Technology Fund - ADQ TWF'.

ADQ, an Abu Dhabi-based investment and holding company, and Turkey Wealth Fund (TWF), the sovereign wealth fund of Turkey, have launched $300 million worth ‘Turkey Technology Fund-ADQ TWF’, which will invest in venture capital (VC) funds and high-growth potential companies in Turkey.

Established to undertake investments in high-growth, Turkish startups with innovative business models, the ‘Turkey Technology Fund – ADQ TWF’ will invest in companies developing emerging technologies or improving existing technologies in significant sectors like energy and utilities, healthcare and life sciences, food and agriculture, mobility and logistics, financial services, and education.

Building on the UAE’s platform to support strategic investments in Turkey, the new fund was launched by Mr. Mohamed Hassan Al Suwaidi, Managing Director and Chief Executive Officer of ADQ, and Mr. Arda Ermut, Chief Executive Officer and Board Member of TWF.

Mohamed Hassan Alsuwaidi
Mohamed Hassan Al Suwaidi

“Launching Turkey Technology Fund–ADQ TWF builds on the broader commitment to investing in the future growth of Turkey we made in late 2021 as the UAE and Turkey continue to advance bilateral trade and investment. Turkey is an attractive market with substantial opportunities for investing in vital sectors that align with our areas of expertise. By providing access to the national and regional champions in our portfolio, we will help to unlock even greater value for these companies and funds with high-growth potential.”

For his part, Mr. Ermut said, “Turkey has grown significantly in its technology ecosystem over the last few years. We believe Turkey Technology Fund – ADQ TWF will give ADQ and TWF access to a pipeline of compelling investment opportunities specialized in next-generation technologies that will contribute to the strategic growth of Turkey’s economy and ultimately reinforce bilateral cooperation between both our nations.”

The fund marks the first step taken by the TWF as part of its vision to build a broader $1 billion technology platform, to become the reference technology fund accelerating technological development in Turkey. 

“Compared to similar funds in Turkey, the Turkey Technology Fund will create a unique added value for our country with its volume and international direct investment dimension and the multiplier effect it will provide for other technology investments,” Mr. Ermut added.

In late 2021, the Turkish VC ecosystem reached its highest ever quarterly, half-yearly and yearly level of capital raised by local startups, which also accounted for 30 percent of all VC transactions closed and more than half of all capital deployed into startups across the Middle East and North Africa (MENA), Turkey, and Pakistan.

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