IFC Invests $20 Million to Fuel Tech Startups in Türkiye and CEE

ISTANBUL, Türkiye, March 5, 2025 – The International Finance Corporation (IFC) is injecting $20 million into Revo Capital Fund III, a venture capital fund focused on early-stage technology companies. This strategic investment aims to bolster innovation and drive sustainable growth within Türkiye and the Central and Eastern Europe (CEE) region. With at least 70 percent of the IFC’s capital specifically earmarked for Türkiye, the investment underscores a strong commitment to the country’s burgeoning tech sector and addresses critical early-stage funding gaps.

The IFC’s investment in Revo Capital Fund III marks a significant step toward strengthening the entrepreneurial ecosystem in Türkiye and the broader CEE region. This infusion of capital is designed to fuel the growth of innovative startups and position Türkiye as a key player in the global technology landscape. The fund’s focus on sectors like fintech, cybersecurity, and AI reflects the evolving needs of the modern economy and the strategic importance of these areas for future growth.

Strategic Allocation of Funds

IFC’s investment is strategically allocated to maximize its impact. at least 70 percent of the $20 million will be directed towards Turkish startups, while up to 20 percent is designated for the CEE region. Furthermore, up to 10 percent will support ventures founded by Turkish diaspora entrepreneurs, fostering connections and knowledge transfer between Türkiye and its global diaspora. Fund III aims to invest in 25 early-stage startups by 2030, targeting key sectors such as:

• AI-driven innovation
• Fintech
• B2B Software as a Service (SaaS)
• Cybersecurity
• Health Tech
• Energy
• Gaming

Empowering Women Entrepreneurs

In line with its commitment to gender equality, IFC is ensuring that at least a quarter of its capital is earmarked for startups co-founded by women. This initiative aims to address the gender gap in the venture capital space and provide women entrepreneurs with the resources they need to succeed. IFC also supported Revo Capital in developing a roadmap and adopting inclusive investing practices, including participation in IFC’s ScaleX Program.

A History of Collaboration

This investment marks IFC’s third collaboration with Revo Capital Management. Previous investments include $8 million in Revo Fund I and €15 million in Revo Fund II during the COVID-19 pandemic. This continued partnership underscores IFC’s confidence in Revo Capital’s ability to identify and support promising tech startups.

“We are grateful for IFC’s continued support as an anchor investor in fund III, reaffirming thier confidence in Revo Capital’s mission and Türkiye’s innovation potential,”

said Cenk Bayrakdar, Founding Partner and Managing Director at Revo Capital.

Bayrakdar further emphasized Revo Capital’s hands-on approach, stating:
Our strategy focuses on exporting technology from Türkiye while positioning the country as the R&D hub for these ventures. We see ourselves as more then just investors—we work closely with founders throughout their scaling journey, helping them grow into leading global businesses.

IFC’s Commitment to Türkiye

IFC’s investment in Revo Capital Fund III is part of a broader strategy to support entrepreneurship and innovation in Türkiye. As of February 2025,Türkiye represents IFC’s third-largest country exposure globally,with a committed portfolio of close to $5.4 billion. This notable investment underscores IFC’s belief in the country’s economic potential and its commitment to fostering sustainable development.

“Our commitment to the region’s startup ecosystem is stronger than ever,”

said Wiebke Schloemer, IFC Director for Türkiye and central Asia.

Schloemer added, With progressively increasing investments, we are reaffirming our confidence in the growth potential of tech entrepreneurship in Türkiye and the CEE countries. Our goal is to empower entrepreneurs to be globally competitive, while fostering job creation and promoting technology exports.

Revo Capital’s track Record

Revo Capital has a proven track record of success. Founded in 2013, the firm has invested $180 million across two funds, supporting 40 technology startups and achieving 17 accomplished exits. Revo Capital was an early investor in leading Turkish startups, including two unicorns, playing a pivotal role in their global expansion.

Over the past five years, the total worth of startups in Türkiye has grown more than tenfold, reaching nearly $37 billion in 2023. This impressive growth highlights the dynamism of the Turkish tech sector and the potential for further innovation.

Looking Ahead

With the launch of its $100 million third fund in 2025, Revo Capital aims to continue its mission of supporting early-stage startups with a strong focus on AI-driven innovation. The fund will also extend support to Turkish diaspora entrepreneurs in the U.S., EU, and UK, as well as innovative startups in Central and Eastern Europe.By combining seed-stage investments with Series A funding, Revo Capital helps startups scale globally and export their technologies, contributing to the growth of Türkiye’s innovation ecosystem.

Conclusion

the IFC’s $20 million investment in Revo Capital Fund III represents a significant boost for the tech startup ecosystem in Türkiye and the CEE region.By providing much-needed capital and support, this investment will help to foster innovation, create jobs, and drive sustainable economic growth. With a focus on key sectors and a commitment to empowering women entrepreneurs, the partnership between IFC and Revo Capital is poised to make a lasting impact on the region’s technology landscape.

Türkiye’s Tech Boom: An IFC Investment Fuels Innovation

Did you know that Türkiye is rapidly emerging as a global technology hub, attracting meaningful foreign investment and fostering a thriving ecosystem of innovative startups? This interview delves into the recent $20 million investment by the international Finance Corporation (IFC) in Revo Capital Fund III, exploring its implications for Türkiye’s technological advancement and the broader Central and Eastern European (CEE) region.

Interviewer: Dr.Anya Sharma, a leading expert in international finance and emerging market investments, joins us today to discuss this exciting progress. dr. Sharma, welcome.Could you begin by explaining the importance of the IFC’s investment in Revo Capital Fund III for the Turkish tech sector?

Dr. Sharma: The IFC’s $20 million investment in Revo Capital Fund III is incredibly significant for several reasons. Firstly, it underscores the growing international recognition of Türkiye’s potential as a tech powerhouse. This investment isn’t just about providing capital; it’s about validating the country’s burgeoning entrepreneurial ecosystem.The IFC,being a prominent arm of the World Bank Group,lends its credibility and expertise,attracting further investment and bolstering investor confidence in the region. Secondly, the targeted allocation—at least 70% for Turkish startups—demonstrates a clear commitment to fostering local talent and technology development. This is crucial for sustainable and inclusive economic growth. The investment boosts early-stage funding, addressing a critical gap that frequently hinders the growth of promising startups.

Interviewer: The article highlights a focus on specific sectors like fintech,cybersecurity,and AI. Why are these sectors especially attractive for investment in Türkiye and the CEE region?

Dr. Sharma: You’re right, the focus on fintech, cybersecurity, and AI is strategic. These sectors represent high-growth areas with global demand. Fintech, in particular, is experiencing explosive growth worldwide, and Türkiye, with its large young population and increasing adoption of digital financial services, presents a fertile ground for innovation in digital payments, lending, and other financial technologies. Cybersecurity is becoming increasingly crucial in a digitally interconnected world, making cybersecurity startups attractive investments due to the rising need for robust security solutions, both for businesses and consumers.Furthermore, AI is transforming various industries, and this investment helps to nurture talent and innovation in this cutting-edge field. These strategically significant sectors will contribute to the generation of high-skilled jobs and technology exports vital for building long-term economic resilience and competitiveness.

Interviewer: The investment also includes a focus on supporting women entrepreneurs. How crucial is this aspect of the initiative?

Dr. Sharma: The focus on women entrepreneurs is absolutely crucial. It’s a matter of both social justice and economic development. Studies consistently show that businesses with women in leadership roles often demonstrate higher profitability and innovation. By actively targeting investments toward startups co-founded by women, the IFC and Revo Capital are addressing the gender gap in venture capital—a pervasive challenge globally—and empowering a crucial segment of the entrepreneurial community. This is not only ethically correct but also essential for maximizing the economic potential of the region’s talent pool. This inclusive approach reflects a modern understanding of sustainable and equitable economic development.

Interviewer: Revo Capital has a history of successful investments. What does this partnership with the IFC add to their existing expertise and
Türkiye’s Tech Revolution: A $20 Million Investment Ignites Innovation

Is Türkiye quietly becoming a global tech powerhouse? The answer, according to our expert, is a resounding yes. A recent $20 million investment by the International Finance Corporation (IFC) in Revo Capital Fund III is fueling a technological boom, and the implications are far-reaching.

Interviewer: Welcome, Dr. anya Sharma, a leading expert in international finance and emerging market investments. The IFC’s investment in Revo Capital Fund III has generated notable buzz. Can you explain its importance for Türkiye’s tech sector?

Dr. Sharma: the IFC’s $20 million investment in Revo Capital Fund III is indeed a landmark event, signifying a critical turning point in Türkiye’s technological journey. It validates the country’s burgeoning entrepreneurial ecosystem and attracts further international investment, boosting investor confidence. this is not just about capital injection; it’s about global recognition of Türkiye’s potential as a tech hub. The targeted allocation—at least 70% for Turkish startups—is crucial for sustainable, inclusive growth, focusing on nurturing local talent and technological advancement. This significant investment directly addresses the critical early-stage funding gap frequently enough hindering the growth of promising startups.

The Strategic Importance of Targeted Sectors

Interviewer: The investment focuses on sectors like fintech, cybersecurity, and AI. Why are these areas so attractive for investment in Türkiye and the CEE region?

Dr. Sharma: The focus on fintech, cybersecurity, and artificial intelligence (AI) is a strategic move reflecting global market trends and Türkiye’s specific strengths. Fintech, with its explosive global growth, finds fertile ground in Türkiye’s young, digitally active population and the increasing adoption of digital financial services. This offers huge potential for innovations in mobile payments, digital lending, and other financial technologies. Cybersecurity’s importance is self-evident in our increasingly interconnected world; the demand for robust security solutions for both businesses and consumers drives investment in this area. AI’s transformative power across industries presents a massive possibility, and this investment effectively cultivates talent and innovation in this cutting-edge field. these sectors are key drivers of high-skilled job creation and technology exports, essential for building long-term economic resilience and global competitiveness.

Empowering Women Entrepreneurs: A Vital Component

Interviewer: The investment also emphasizes supporting women entrepreneurs. How important is this aspect of the initiative?

Dr. Sharma: The emphasis on women entrepreneurs is not merely laudable; it’s economically essential. Studies consistently show that businesses with women in leadership roles often exhibit higher profitability and innovative drive. By actively supporting startups co-founded by women through this Revo Capital Fund III initiative, the IFC is directly addressing the persistent gender gap in venture capital—a global challenge—while together empowering a significant component of the entrepreneurial community. this inclusive approach isn’t just ethically sound; it’s crucial for maximizing the region’s economic potential by fully utilizing its talent pool. This reflects a modern understanding of sustainable and equitable economic growth.

Revo Capital’s Track Record and the IFC Partnership

Interviewer: Revo Capital has a demonstrated history of accomplished investments. What does this partnership with the IFC add to their capabilities?

Dr. Sharma: Revo Capital’s established track record,combined with the IFC’s backing,creates a powerful synergy. The IFC’s involvement isn’t just about financial resources; it brings significant credibility,global reach,and operational expertise to the table. This enhances Revo Capital’s ability to attract further investment, mentor portfolio companies, and facilitate their global expansion. The partnership essentially amplifies Revo Capital’s impact, accelerating the growth of Turkish and CEE tech startups and strengthening the regional ecosystem as a whole. This collaboration provides a significant boost to the scale and scope of their existing efforts.

Looking Ahead: Türkiye’s technological Future

Interviewer: What are your overall predictions for Türkiye’s tech sector following this significant investment?

dr. Sharma: The IFC’s investment, combined with Revo Capital’s expertise and Türkiye’s inherent potential, points towards a luminous future for the country’s tech sector. We can anticipate a significant increase in innovative startups, accelerated growth in key sectors like fintech and AI, and a broader strengthening of the overall entrepreneurial ecosystem. This will undoubtedly attract further foreign investment, fostering job creation, and positioning Türkiye as a leading player in the global technology landscape. The investment in women entrepreneurs will foster more diversity and inclusion, driving innovation and further economic growth. This isn’t just about a single investment; it’s a signal of lasting transformative change.

Conclusion:

This significant investment highlights Türkiye’s potential as a leading technology hub. The focus on key sectors, coupled with support for women entrepreneurs, promises a wave of innovation and jobs. What are your thoughts on Türkiye’s future in the global tech landscape? Share your predictions in the comments below!