Development Minister says start-up investments are at a very low level in Turkey

Development Minister Elvan has stated that start-up investments in Turkey is at the level of USD 1.3 per person, while this figure is USD 12.7 in Spain which has the lowest share in EU economy. Speaking at the opening of the World Business Angels Investment Forum (WBAF), Development Minister Elvan said traditional financial institutions were reluctant to finance start-up or early-stage companies because of high risk.

He went on to say following: “Business angels serve as a catalyst to bridge the gap between entrepreneurship and finance, offer a prescription that will solve many problems together at affordable costs, as well as providing technical and financial assistance. Angel investors also advise firms they are investing in and partner with thus creating value.  Today, the total angel investment in the United States alone reaches about USD 21 billion, and many well-known global companies such as Apple and Google have expanded their business with the opportunity of angelic capital, at least once”

Elvan stressed that the success of angel investors depends on the existence of a strong regulatory infrastructure with intellectual property rights, a sound legal framework and a strong institutional base which are also indispensable conditions for a healthy investment ecosystem.

Elvan said, “We put into practice the legal arrangements for angel investors in 2013. With this system, 75 percent of the investments made by the investors with license from official authority are being taxed down. Moreover, if enterprise making the investment has received public support in the last 5 years, this rate increases to 100 percent.”