500 Startups, the global seed venture capital firm and accelerator program, recently announced that it is launching a $15M fund to invest in Turkish startups over the upcoming years. Consistent with 500’s playbook of making many small bets, the fund plans to make 100 investments. This implies an average aggregate amount of $150K going to each startup, including $50K-$100K initial investments and 15-20% of the fund reserved for follow ons.
This fund is going to give a strong boost to seed stage startups in Turkey. 500’s successful investments in the US include cloud communications company Twilio, online education marketplace Udemy, and 3D printer producer MakerBot. Together with its promising investments in Turkey, including anonymous messaging app Connected2.me (where we’re co-investors) and social marketing automation SaaS provider Adphorus, these investments show that 500 has the potential to have a big positive impact on Turkey’s startup ecosystem.
I wrote about the challenge of being a VC in Turkey yesterday. The arrival of 500 is a great example of how it’s going to get easier over time. We welcome 500’s founder Dave McClure and its Turkish partners Erhan Erdogan and Erbil Karaman to the ecosystem, and look forward to working with them.
Note: An earlier version of this post was updated to include more information shared by Erhan about 500’s target investment sizes.