(Bloomberg) — Revo Capital, a Turkish enterprise capital agency that has backed tech unicorns Getir and Builder.ai, plans to boost a $100 million fund to spend money on regional synthetic intelligence-driven startups.
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The fund will likely be Revo’s third and can mark its first investments within the vitality and gaming industries, Managing Director Cenk Bayrakdar stated in an interview in Istanbul. It should deal with firms that develop AI and massive information options, and also will again companies in fintech, well being, cloud safety and B2B cloud software program, he stated.
Success tales like fast-delivery service Getir and Peak Video games have put Turkish startups on the map lately. However Revo’s newest fund-raising comes at a difficult time, as inflation eats into valuations and reduces personal fairness and enterprise capital investments all over the world.
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Revo sees 80% of the newly raised cash going to Turkish firms, with the remainder earmarked for central and jap Europe. The fund will search companies that use native expertise to construct a worldwide presence and have a hard-currency income stream to extend their enchantment to overseas buyers, in keeping with Bayrakdar.
“We solely spend money on international firms or in firms which have international enterprise,” Bayrakdar stated. “International buyers don’t prioritize Turkey-only companies.”
Bayrakdar stated the fund will intention for a primary shut of $50 million to $60 million in March, and targets $100 million at last shut with a cap at $150 million.
VC investments into Turkish startups totaled $154 million within the first 9 months of this 12 months, down from $1.26 billion in 2022, in keeping with startups.watch, an Istanbul-based monitoring agency.
Revo’s earlier sources of funding embrace worldwide monetary establishments just like the European Financial institution for Reconstruction and Improvement, German Funding Company, European Funding Fund and Worldwide Finance Company.
Revo raised $66 million for its inaugural fund in 2013 and $98 million for a second one in 2020. The latter expects to make its last one or two investments subsequent 12 months, Bayrakdar stated.
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