The technology startup landscape in Türkiye is experiencing a surge in diversity of investments, with an increasing number of corporate entities eagerly jumping on board. Licensed investment funds are actively keeping a close eye on the burgeoning tech ventures.
The tech scene, encompassing financial technology, e-commerce, marketplaces, mobility, gaming, energy and health care startups, continues to attract capital from various sources, including corporations, venture capital funds, crowdfunding platforms and angel investor networks.
Industry monitor startups.watch recently published its Corporate Venture Capital Investment Fund Report for September.
According to the report, as of the end of August, Türkiye boasted a total of 79 corporate venture capital funds. These funds were distributed across various sectors, with 39% in finance, 22% in holding companies, 8% in technology parks and the remaining 31% in diverse sectors.
In August alone, corporate venture capital funds and corporations engaged in nine investment rounds, contributing $5.6 million to the tech startup ecosystem. When considering the first eight months of 2023, the total investments from corporate venture capital funds and corporations reached a noteworthy $51 million, with the corporate sector's participation rate standing at 34%.
Artificial intelligence (AI), gaming and financial technology are the standout sectors, according to the startups.watch report, consistently drawing the most significant corporate investments, along with B2B software and mobility.
Türkiye has gained recognition globally, ranking 13th in gaming investments, while financial technology and software investments are also making significant strides.
The rise of six unicorn startups in the last four years and lucrative sales agreements have brought Türkiye into the international spotlight. To sustain this momentum, increased corporate involvement in the growing entrepreneurial ecosystem is crucial.
The data reveals that out of every two investments, one is channeled through corporate venture capital investment funds. In addition, 279 firms have obtained a Corporate Venture Capital Fund License, despite 13 firms ceasing operations.
In addition to the local venture capital funds with over a decade of investment experience, foreign investment funds are also actively contributing to Türkiye's thriving tech ecosystem.
Türkiye's entrepreneurial landscape, which initially relied on angel investors and a handful of venture capital firms, has evolved in recent times, shifting toward corporate venture capital investment funds.
The Treasury and Finance Ministry's second-quarter report for 2023 on angel investment licenses in Türkiye disclosed that a total of 942 licenses have been granted since 2013, excluding those that have been canceled.
Currently, approximately 485 licenses, spanning from June 2018 to June 2023, remain active.
The ascent of crowdfunding platforms in Türkiye is also worth noting. Out of a total of 20 licensed crowdfunding platforms, only seven are currently operational, while the remaining 13 are yet to become active players.
While these platforms create new sources of funding and diversify options, building trust in crowdfunding remains paramount, and the development of transparent and accountable platforms will ensure the continued sustainability of the system.
Notable crowdfunding platforms in Türkiye include Basefunder, Girişim Kitle Fonlama Platformu, Fongogo, Info Yatırım Menkul Değerler, Dijital Kitle Fonlama Platformu, Halk Yatırım Menkul Değerler and Global Kitle Fonlama Platformu.
