StartupCentrum - Yıldız Tekno GSYO Releases the 2024 Q3 Turkey Startup Ecosystem Investment Report
Forex - The year 2024 has begun as a year filled with new beginnings and opportunities for the Turkish entrepreneurship ecosystem. Strengthened by the experiences gained in 2023, Turkey's innovative spirit has started to manifest itself from the very first days of the new year. According to the StartupCentrum report, 323 investment rounds were completed, and a total of 754 million dollars was invested in the first nine months of the year.
754 Million Dollars Investment in 9 Months
Despite economic challenges, investments in startups in 2024 paint a hopeful picture. In the first nine months of the year, a total of 753.8 million dollars was invested. Although 2024 is not yet complete, the fact that investment amounts have already exceeded those of 2023 provides strong signals that growth in this area will continue in the future.
In terms of the number of investments, 323 investment transactions took place in the third quarter of 2024. It can be said that the impact of the 133 startups benefiting from the BIGG investment is quite significant. The second quarter of 2024 had the lowest investment numbers in the last 15 quarters, with only 48 investments. However, in the third quarter of 2024, there was a resurgence in the number of investments, with 61 transactions occurring.
The losers of 2024 continue to be startups seeking their first investment.
In the first quarter of 2024, a significant increase was observed in investments below 1 million dollars, peaking at 177 investments in this segment. However, considering that 133 of these investments were sourced from the BIGG program, it is evident that the number of investments outside of BIGG was limited to 44. This number dropped to 29 in the second quarter, but in the third quarter, it showed signs of recovery with 35 investments. Although investments between 1-10 million dollars hit a low in the second quarter of 2024, they began to recover with 16 transactions in the third quarter. In the first nine months of 2024, a total of 44 investments occurred, while this number was 51 in the same period last year, indicating a contraction in this timeframe.
The Situation of Early Stage Investments (Series A and Series B)
When examining early stage investments, despite a decrease to 50.7 million dollars in the third quarter of 2024, there was a peak in total for the year. This development indicates that the long-discussed challenge of early stage startups finding investments is beginning to be addressed in the ecosystem. However, it would be more appropriate to wait for data from 2025 to draw a definitive conclusion. Although there has been an increase in investment amounts during this period, it is evident from the graph that the number of investments remains below the peak year of 2022.
Unwavering Peaks: Artificial Intelligence and Gaming Industry
The health and biotechnology sector stood out as the most attractive sector with a total of 56 investments, including 40 under the BIGG program. Following this sector, artificial intelligence and machine learning secured second place with 49 investments, while 23 investments in sustainability and environmental initiatives also demonstrated significant performance. The gaming sector emerged as another area of interest with 17 investments. Furthermore, considerable investment interest has also been observed in other sectors like e-commerce, marketing and sales, fintech, and agricultural technologies.
The transportation and logistics sector leads with an investment amount of 267.8 million dollars. This sector is followed by the fintech sector, which received 130.8 million dollars. Investments in artificial intelligence and machine learning reached 102.6 million dollars, highlighting the prominence of this sector in both the number of transactions and the amount. Additionally, technology-focused sectors such as blockchain and Web 3.0, cybersecurity, gaming, and e-commerce also stand out with notable investment figures.
Foreign Investors Are Returning to Our Ecosystem
In 2021 and 2022, the share of Turkey-based investors was 77.15% and 70.75%, respectively. During this period, European and U.S. investors accounted for around 8-10%. By 2023, the share of domestic investors had risen to 86.52%, demonstrating their regained dominance in the ecosystem. In the same year, the shares of investors from Europe and North America were recorded at 6.42% and 4.98%, respectively.
In 2024, the share of Turkey-based investors declined to 81.91%, while slight increases were observed among European and U.S. investors, whose shares reached 7.98% and 7.45%. The last two years indicate that the decline in global venture investments has manifested itself through the decreased participation of foreign investors in the ecosystem. During this period, the role of domestic investors has become increasingly important.
The Proportion of Women Founders in Startups is Increasing Every Day
In 2024, the proportion of startups with only female founders has reached 14.29%, representing the highest level in the past five years. This figure was 4.15% in 2020, showing a significant increase in 2024. The primary reason for this growth is that a majority of startups benefiting from the BIGG program are predominantly single-founder structures, with female founders being more prevalent in this area. In fact, the proportion of startups with only female founders among BIGG investments has reached 21.8%.
The percentage of startups co-founded by both male and female founders has fluctuated between 13.94% and 17.62% from 2020 to 2024, stabilizing at 15.53% in 2024. Meanwhile, the share of startups with only male founders has decreased from 78.24% in 2020 to 70.19% in 2024. This trend indicates that the ecosystem is evolving towards a more balanced structure favoring female entrepreneurs, reducing the dominance of solely male founders.