Türkiye’s startup ecosystem ended 2024 with 469 investment deals, totaling $1.1 billion (TL 39.23 billion), according to industry monitor data. The Scientific and Technological Research Council of Türkiye’s (TÜBITAK) Individual Youth Startup (BIGG) Fund again played a central role in growing the ecosystem as it stood out with 42 pre-seed investments in biotechnology, 32 in health and 27 in artificial intelligence.
According to the figures published during an event hosted by startups.watch, 2024 also marked a year in which Türkiye received the most pre-seed investments to date.
The report indicated a 44% increase in overall deal sizes and a 31% increase in the number of transactions compared to the previous year. Excluding BİGG Fund investments, the AI sector remained the leader, followed by cloud-based software services, financial technology or fintech, and gaming.
Corporate venture capital growth
In 2024, Türkiye saw the establishment of five new corporate venture capitals (CVC), bringing the total to 91. That figure reaches 101 with the inclusion of funds linked to acceleration programs.
Additionally, a record 455 venture capital investment funds (VCIF) were approved, with 440 active, even after accounting for 15 closures. Despite the growing number of equity-based crowdfunding platforms, total investment volume decreased by 61%, and the number of transactions fell by 47%.
Foreign interest in Türkiye’s startup ecosystem reached its lowest level in five years, reflecting a significant drop in the number of deals and foreign investment ratios.
Successful exits and IPOs
2024 was a dynamic year for Turkish startups regarding initial public offerings (IPOs), exits and acquisitions. Several transactions provided satisfaction for investors and allowed startups to grow.
The Insider startup garnered attention with a Series E investment deal during times of restricted financial access, while gaming startups were noted for their exit deals.
Alternative funding methods and IPO strategies highlighted diverse investment opportunities, and successful exit deals provided positive examples for investors in technology startups.
Ready for large data center investments
“We see that the technology trends we discussed last year have materialized. Total foreign investment is around $10.9 billion, matching the previous year’s level. Technology investments are recovering, and we are ready for large data center projects,” said Burak Dağlıoğlu, the head of the Presidency’s Investment Office.
“AI remains a significant agenda for Türkiye. Regarding the Personal Data Protection Board (KVKK), we have aligned our laws with the European General Data Protection Regulation (GDPR), and we want to increase infrastructure investments for AI. We are anticipating large data center investments in Türkiye, which could also serve the region,” Dağlıoğlu noted.
He also announced the launch of an educational portal under the Start in Türkiye domain to facilitate easy access to investments for entrepreneurs.
“We are providing guidance to help entrepreneurs connect with the right investors more easily. Entrepreneurs will be able to find investors matching their desired criteria. In the next phases, we will also include accelerators, the Technology Development Center (TEKMER), and other entrepreneurship centers,” he added.
Supporting ecosystem development
Sadullah Uzun, general manager of the National Technologies Directorate under the Industry and Technology Ministry, emphasized the strategic importance of supporting technology initiatives that ensure national independence.
Uzun, emphasizing his familiarity with the entrepreneurial ecosystem and his deep understanding of the challenges entrepreneurs face in areas ranging from customer acquisition to financing, shared insights about the Technology and Innovation Fund and the services it provides to other entrepreneurs.
“The Technology and Innovation Fund, a sub-fund of the Türkiye Development Fund, with the Industry and Technology Ministry as its investor, has a total size of TL 475 million. This fund provides direct investments to technology-focused, next-generation startups that have reached specific milestones, as well as indirect investments through venture capital funds,” he noted.
“With the Technology and Innovation Fund, we aim to support the development of the entrepreneurial ecosystem in our country, foster the creation of high-value-added products and services incorporating new technologies, and contribute to the nation’s economic growth,” he added.
Successful investment deals
Ali Karabey, co-founder of 212 VC, highlighted their role as one of Türkiye’s oldest venture capital funds, emphasizing that they have contributed to creating a secure investment climate for tech startups with high returns from their first and second funds.
Karabey noted the significant impact of long-term investments like Insider on achieving successful deals and underscored the expansion of their team to facilitate the development of alternative financing options.
Drawing attention to the importance of success stories like Insider, he shared: “We invested in Insider eight years ago and supported them at every step along the way. Replicating such examples is not easy. Through Simya VCIF, we invested in startups embarking on international journeys via the Allchemist accelerator program. In collaboration with Akkök Holding, we launched the 212 Next fund to invest in global startups focused on advanced materials.”
“In several areas, we took the first step to bring international expertise to Türkiye. During this process, we also grew our team,” he added.
Post-seed success stories
Data from 2024 indicates that Türkiye’s startup ecosystem continues to demonstrate growth and retains its potential to enhance competitiveness on the global stage. However, an increase in global success stories in the post-seed stages is essential for further revitalization. Encouraging international collaborations and supporting innovation and technology-focused investments are expected to drive entrepreneurship forward.
Publicly backed funds, such as TÜBITAK BiGG, are expected to enhance their support for entrepreneurship by increasing innovation and technology-focused investments.
Additionally, the AI, fintech and gaming sectors are likely to remain on investors’ radar in 2025. Despite challenges, targeted strategies and cooperation mechanisms can transform opportunities within Türkiye’s startup ecosystem. If the right steps are taken, 2025 is projected to be a stronger investment year.
TT Ventures Pilot startups took global stage at CES 2025
The startups of the TT Ventures Pilot startup acceleration program showcased their innovative projects based on artificial intelligence, virtual reality and big data in the fields of energy, retail, supply chain and education at the world’s largest consumer electronics show, CES 2025.
The Consumer Electronics Show (CES), which took place in Las Vegas on Jan. 7-10, 2025, featured global tech giants showcasing their advanced technology products and projects. Turkish startups also made their presence felt at the event.
TT Ventures Pilot startups, under Türk Telekom’s corporate venture capital arm, brought Türkiye’s innovative vision to the global stage at one of the most prestigious technology events.
With this year’s theme, “Dive In,” CES 2025 highlighted AI, digital health, mobility and sustainability. The Pilot startups introduced their AI, virtual reality and big data-based innovative projects in energy, retail, supply chain and education at the event.
Among them were Artiwise, an AI-powered customer voice platform; egaranti, a cloud-based retail technology platform; Costifier, a cloud-based cost estimation tool for the supply chain; Some Carbon, offering next-gen carbon reduction services in energy solutions; Coone, an AI and crowd-sourced data platform in GEN AI; and Nara, a virtual and augmented reality platform in education technologies.
Support for globalization
Türk Telekom CEO Ümit Önal emphasized the significance of CES 2025 as a platform for Turkish startups to step onto the global stage.
“At Türk Telekom Ventures, we believe that our local startups, with their innovative solutions, will not only meet today’s needs but also shape the technological transformation of tomorrow. With this vision, we have been supporting local startups developing next-generation technologies for over a decade. At Türk Telekom Ventures, we don’t just invest in startups; we take strategic steps to support their growth in the global arena,” Önal said.
“The participation of our Pilot startups at CES, the world’s largest consumer electronics show, with their advanced technology solutions, allows them to showcase their innovation and capabilities at prestigious technology events like CES. This is of great importance not only for contributing to our country’s tech ecosystem but also for increasing the international recognition of Turkish startups,” he noted.
Önal said their goal with the TT Ventures Pilot program is to create unicorns, startups with a valuation exceeding $1 billion, that will carry Türkiye’s technology achievements to the international stage.
“We continue to pursue our goal of being a technology bridge between Türkiye and global markets with our TT Ventures office in San Francisco. In addition to providing financial support, Pilot also offers business development, mentorship, and networking opportunities necessary for startups to grow in global markets,” he noted.
“As Türk Telekom Ventures, we will continue to support local startups that will increase our country’s competitiveness in the global economy and grow the entrepreneurship ecosystem,” Önal stated.
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