Venture Capital Investment Funds are financial instruments that support the realization of innovative ideas and projects with growth potential, changing the dynamics of the business world. These funds are typically established to provide capital, guidance, and support to newly formed or rapidly growing companies. Additionally, they provide resources to projects that promote innovation and the development of new products and services.
At Neo Portföy, we pursue two different strategies within Venture Capital Investment Funds: First, Risk Capital Funds, and second, Private Equity Funds. Risk Capital Funds are known for their high-risk nature, as they involve investing in a volatile environment where the success of young companies is not guaranteed. However, the high potential risks are balanced by the prospect of high returns. They often invest in multiple ventures, aiming to distribute risk and minimize potential losses for investors. Risk Capital Funds typically have a short-term perspective. On the other hand, Private Equity Funds usually invest in more mature and stable companies. Because they focus on investments with lower risk, potential returns are generally lower compared to Risk Capital Funds. Private Equity Funds make longer-term investments.
With these two strategies, we manage 21 Venture Capital Investment Funds totaling 10.5 billion Turkish Lira in size. While helping lay the foundations for future large businesses, these funds also offer investors the potential for high returns through innovative projects.