In this article, I would like to introduce one of the investment instruments that provides access to startup companies, with a special focus on Start-up GSYF (Start-up VCIF), a fund managed by Albaraka Portföy that we offer as a new investment vehicle. From this perspective, the piece is directed at individual investors.

While venture financing plays a major role in helping entrepreneurs access capital across the globe, it also stands out as one of the key channels supported by public programs to promote technological advancement. Although Türkiye has had early forms of such structures, it is over the last 10 years that we have started to see the formation of a true ecosystem, particularly through venture capital funds and their derivatives.

Today, there are a variety of mechanisms that support startup funding and offer alternative investment models for investors interested in backing young and innovative technology companies. These include venture capital funds, venture capital investment companies, angel investor networks, and equity-based crowdfunding platforms. Venture capital funds can be categorized into two groups: those established abroad and those established under the regulatory framework of Türkiye’s Capital Markets Board (SPK).

Each of these mechanisms has its own advantages and disadvantages. Venture capital investment companies provide professional fund management as well as liquidity and access for smaller investors. Angel investor networks enable closer engagement with portfolio companies but often increase operational burden and carry high concentration risk due to limited diversification. Crowdfunding platforms are relatively new in Türkiye and offer access to early-stage companies for smaller investors, but they lack liquidity and professional portfolio management.

Venture capital funds offer the critical advantage of professional fund management and broad diversification. However, each venture capital fund has its own entry requirements. They often lack liquidity and may only accept capital during specific fundraising periods. Investors usually commit to these funds without knowing the portfolio content in advance and must rely on the fund manager’s expertise and track record.

At this point, Start-up GSYF was designed to solve these common issues and offer key advantages for investors. Start-up GSYF (Albaraka Portföy Start-up Girişim Sermayesi Yatırım Fonu) is Türkiye’s first venture capital investment fund to be listed on Borsa İstanbul.

Start-up GSYF aims to invest in startups across all growth stages, starting from early stage. Investors can access high-potential next-generation tech companies in Türkiye via a professionally managed, SPK-regulated vehicle. They can invest through their brokerage accounts via the web or with the support of customer representatives using the fund code APYVC.

1. The easiest way to invest in startups in Türkiye

Start-up GSYF removes traditional minimum investment barriers and allows investors to invest without any commitment. Investors can buy fund shares at a unit price anytime through their brokerage accounts.

2. Visibility into the startup portfolio

Unlike most funds that accept investment before portfolio companies are known, Start-up GSYF offers transparency. Investors can monitor the portfolio and increase their positions as confidence grows.

3. Liquidity access

Direct investments in startups or traditional VC funds lack liquidity until exit. However, since Start-up GSYF is listed on Borsa İstanbul, investors can sell their shares in the secondary market. There are two mechanisms: Albaraka Portföy may buy back up to 10% of the fund shares as a goodwill gesture. And a deeper secondary market is expected to emerge once the fund reaches a size of 100 million Turkish Lira.

4. Indirect access to other VC funds

Unlike private funds, Start-up GSYF may allocate up to 20% of its assets to other VC funds, giving retail investors access to high-caliber international funds that would otherwise be inaccessible due to entry thresholds.

5. Transparent management under SPK oversight

Start-up GSYF operates under the SPK framework and undergoes annual independent audits. Its portfolio companies are independently valued annually or every three years depending on the investment size. Albaraka Portföy also announces a base price every quarter aligned with secondary market developments.

6. Professional fund management

With a 5-member VC investment team and a total staff of 20, Albaraka Portföy brings significant expertise. The fund also offers value-added services to portfolio companies in HR, legal, accounting, international expansion, and B2B sales via its advisory network.

7. Low fund management fee

The annual management fee is just 1%. The fund applies a performance-based success fee only on returns exceeding the hurdle rate.

8. Compliant with participation finance principles

Start-up GSYF adheres to participation finance rules and holds a Shariah-compliance certificate, offering reassurance to investors.

9. Balanced portfolio

The fund builds a diversified portfolio across all startup stages, from early to growth, regardless of sector, offering a balanced risk profile.

10. Tax advantages

Corporate gains of VCIFs are exempt from corporate tax. For individual investors, capital gains are subject to a final withholding tax of 10% (or 0% if held for more than two years). For corporate investors, dividends are tax-exempt and only capital gains are subject to corporate tax. Additionally, up to 10% of declared income or 20% of equity capital used to support startups may be tax deductible under Türkiye’s tax code.

All investors can access information about the fund and its portfolio companies at www.apyventures.com, and reach out to our VCIF team anytime through the same channel."