Turkish Startup Ecosystem Attracts Around USD 1.4 Billion of Investment

​Starting 2022 off with the best first quarter ever, the Turkish startup ecosystem maintained its impressive streak with an equally remarkable second quarter, spearheaded by VCs engaged in financial technology and gaming.

According to data from the Turkish Startup Ecosystem H1 2022 Report, USD 1,393 million were invested across 140 deals in the seed, early, and later VC stages. International investors took part in one out of every four deals, accounting for the lion's share of 96 percent of angel and VC deals with USD 1,338 million.

Looking into angel and VC deals, grocery delivery, gaming, AI, SaaS, and MarTech topped the list in terms of deal volume, whereas FinTech, SaaS, AI, gaming, and eCommerce fared best in terms of deal count.

Türkiye was also ranked above the Netherlands, Estonia, and Austria in the European Super League, whereas it was ranked just above the UAE in the MENA Super League of angel and VC deals. The report also reveals that Istanbul ranked 4th among European cities for angel and VC deals in the first half of 2022, following the likes of London, Paris and Berlin.

On the gaming side, Türkiye not only beat its own record for deals, it also overtook the rest of Europe as the country with the highest amount of gaming deals in the continent with USD 333 million, supported in part by gaming startups that generated record investments such as Dream Games and Spyke Games. The UK came in second behind Türkiye with USD 138 million, trailed by Norway in third place with USD 60 million.

Commenting on the outstanding results, Investment Office President A. Burak Dağlıoğlu said, “Technology investments have recently emerged as an important source of FDI inflows. In addition, Turkish technology entrepreneurs are increasingly attracting major investments from international investors thanks to the country's entrepreneurial business culture, competent talent pool, and perfect location at the nexus of Europe, Asia and Africa. The Investment Office promotes the ecosystem's achievements and prospects at the world's top-tier events, and invites international funds to take part in the next success stories and earn yield high returns."​

Meanwhile, startups.watch Founder Serkan Ünsal said, “Istanbul ranked top in Europe in gaming investments, leaving behind London, Oslo, Helsinki, and Stockholm. For the remaining half of the year, mega-investments are in the pipeline for startups that have attained certain levels," in his statement on the Turkish startup ecosystem's recent performance.

Since the beginning of the pandemic, 65 funds worth USD 866 million have been established in Türkiye.

In addition, investments in blockchain and metaverse initiatives in Türkiye have reached USD 20 million and additional investments are already on the agenda.

" src=
startup ecosystem; gaming; Startups.watch