Frequently Asked Questions

In Venture Capital Investment Funds, the fund manager transfers the capital collected from investors to ventures that align with the defined investment strategy. First, a preliminary screening is carried out to determine where the investment will be made. Following the evaluation, a decision is made to proceed with opportunities that have high potential. These ventures are typically companies with high growth potential but are not yet mature. After the investment decision, the fund's value increases as the company it has invested in grows. Within the framework of the agreed business plan, the fund provides managerial support by transferring its knowledge and experience to the venture. In other words, fund managers not only provide financial support but also contribute to these ventures with strategic consulting and their networks. After a specific period of time—for example, 3-7 years—an exit is made; that is, the company may go public, be sold, or its shares may be transferred to another investor. The profit obtained from these transactions is distributed to the participants who invested in the fund in proportion to their shares.

Investing in VCIFs is generally possible for individuals and institutions defined as “Qualified Investors”. So who are these qualified investors? In Turkey, according to criteria set by the Capital Markets Board (SPK), institutional investors such as development and investment funds, the Ministry of Treasury and Finance, pension funds, global funds, banks, and insurance companies that meet certain wealth thresholds (1,000,000 TL) or have professional experience fall under this category. In other words, VCIFs primarily target investors with high financial literacy and a certain level of savings.

VCIFs offer many advantages! The most attractive aspect for investors is that they offer the opportunity to invest in early-stage companies with high growth potential, which would typically be difficult to access individually. This allows you to diversify your portfolio while also capturing high return potential. In addition, your investments are managed by professional and experienced fund managers. There are also significant tax advantages for VCIF investments in Turkey. The profits of VCIFs established in Turkey are exempt from corporate tax. According to the Council of Ministers Decision No. 2009/14954, the withholding tax rate is 0%, so they do not pay tax through deductions. For startups, VCIFs represent not only financing but also mentorship, strategic partnerships, and reputation, which enhances the innovative strength of the country's economy.

In Turkey, VCIFs offer investors attractive tax advantages. For example, income earned from VCIF participation shares may be exempt from income tax or withholding tax (i.e., tax deducted at source) under certain conditions for both institutional investors (companies) and qualified individual investors. Generally, conditions such as holding the investment for at least two years are required for this exemption. These incentives make VCIFs even more attractive for long-term investments. However, since tax legislation is detailed and subject to change, it is advisable to consult a financial advisor for the most up-to-date information.

While VCIFs offer high return potential, they also carry certain risks. The most significant risk is that the ventures invested in are still in their early stages and there is no guarantee that each one will be successful. Therefore, there is a risk of losing part or all of your principal. Secondly, VCIF investments are typically long-term (illiquid), meaning you may not be able to convert your money into cash immediately when you want to. The fund's performance depends mainly on the fund manager's experience and ability to select the right companies. Therefore, it is crucial to understand all the risks before making an investment decision and to act accordingly.

GİSED membership is open to venture capital investment funds, institutional investors, family offices, fund managers, and early-stage investment organisations. To become a member, you must be actively involved in venture capital or have plans to invest in this area.

To apply for membership, please fill out the contact form on our website to get in touch with us. Your application will be reviewed, and you will be informed about the membership process.

Our members have many advantages such as participation in sectoral events, access to mentoring programs, benefiting from up-to-date research and reports, contributing to policy development processes and being part of a wide professional network.

GİSED forms various working groups according to the interests and areas of expertise of its members. These groups come together to follow sectoral developments, develop policy recommendations and share information.

GİSED organizes seminars, panels, training programs and networking events. These events are organized to increase the level of knowledge of our members and to enable them to connect with other professionals in the sector.

Our mentoring program aims to provide strategic guidance to entrepreneurs from experienced investors and industry experts. You can contact us for information about the program details and application process.

To contribute to GİSED, you can join our working groups, support our events or contribute to our sectoral reports and analyses. You can contact us for more information about ways to get involved.