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Aug 28, 2024 415

In Turkey, approximately $587 million was invested in startups in the first half of the year

#Regional

"Investments in startups in Turkey in the first half of the year approached 587 million dollars, surpassing the total investment amount of the previous year."

In the first half of 2024, the startup ecosystem witnessed substantial investment activity, with a total of $586.8 million being invested across 254 funding rounds. This figure already surpasses the total investments made in the entirety of 2023, highlighting a significant uptick in capital flow into the sector. A noteworthy contribution to this total came from the TÜBİTAK BİGG-1812 investments, which amounted to $4 million. The standout investment during this period was a $250 million funding round for Getir, which was the only investment to exceed $100 million in the first half of the year. Despite this significant activity, a downward trend in investment volume was observed in the second quarter of 2024, marking the lowest level of investment activity since 2021.

The sectors of artificial intelligence and gaming continued to dominate the investment landscape in the first half of 2024. Excluding investments from the BİGG program, the artificial intelligence and machine learning sector emerged as the most active, securing 31 investments. The gaming sector followed with 14 investments, while the sustainability & environment and fintech sectors attracted 11 and 10 investments, respectively. An interesting development was the geographical spread of startup funding, with startups in 29 different Turkish cities securing investment, a significant increase from 17 cities in the previous year. This diversification is largely attributed to the impact of the BİGG program, which has broadened the reach of investment across the country.

Istanbul remains the primary hub for startup activity in Turkey, alongside Ankara and Izmir, which also continue to be preferred locations for startups that operate mainly in Turkey but have official headquarters abroad. However, the participation rate of foreign investors in Turkish startups has seen a decline. In 2023, domestic investors accounted for 16% of investments ranging from $10 to $100 million, which increased to 30% in the first half of 2024. While the involvement of North American and European investors remained stable, there was no significant participation from the MENA and Asian regions. On a positive note, the proportion of startups with at least one female founder saw a marked increase, surpassing 30% for the first time. This rise was particularly influenced by the TÜBİTAK BİGG programs, with female founders leading or co-leading half of these startups, indicating a growing gender diversity within the Turkish startup ecosystem.