2024 Mid-Year Report on the Turkish Startup Ecosystem

In the first half of 2024, the Turkish startup ecosystem saw a total investment of $586.8 million across 254 funding rounds. This figure exceeded the entire investment volume of 2023. A notable $4 million came from TÜBİTAK BİGG-1812 investments, while the largest single investment of $250 million was made in Getir, marking the only deal surpassing $100 million during this period.

Investment Breakdown and Trends

A total of 245 startups benefited from these investments. Of these, 133 were funded through the BİGG program, and the remaining 112 received support from various other channels. However, a quarter-by-quarter analysis revealed a downward trend, with the second quarter of 2024 experiencing the lowest investment activity since 2021.

AI and Gaming Lead the Pack in Sector Activity

Excluding the BİGG program, artificial intelligence and machine learning emerged as the most attractive sectors, securing 31 investments. The gaming industry followed closely with 14 investments, while the sustainability and environment sector received 11, and fintech attracted 10.

Startup Funding Spreads Across More Turkish Cities

One of the standout developments was that startups from 29 different cities in Turkey managed to secure funding in the first half of 2024, up from 17 cities during the same period in 2023. This was largely attributed to the influence of the BİGG program.

Istanbul Remains the Epicenter for Startups

Despite the rise in the number of cities securing investments, Istanbul, Ankara, and Izmir continued to dominate the Turkish startup landscape. Notably, 17% of the startups that received investments operate abroad, despite maintaining their core activities in Turkey.

Decline in Foreign Investor Participation

Foreign investment participation saw a decline in the first half of 2024. While domestic investors’ share in deals ranging from $10 million to $100 million increased from 16% in 2023 to 30% in 2024, involvement from North American and European investors remained steady. However, investors from the MENA and Asian regions were notably absent in this segment.

Women Founders on the Rise

The first half of 2024 marked a milestone for female entrepreneurship in Turkey. The percentage of startups with at least one female founder crossed the 30% threshold for the first time, largely driven by TÜBİTAK BİGG initiatives. Of these, half were solely led by women, while the other half had mixed-gender leadership. The proportion of exclusively female-led startups rose to 15%, a significant increase from the 5% to 7% range in previous years.