Turkey – VC navigator
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Market overview
Review of the market and key statistics
VC List
The table of 130+ VCs, their investment focuses and contacts
Taxes & incorporation
Information on how to launch a startup in Turkey
21%
of all VC deals in MENA are held in Turkey (30% in 2023)
$2.14 bn
raised by Turkish startups in 2024, 50% growth to 2023 numbers
10th
Turkey's rank among startup ecosystems in Europe
72%
of all Turkish startups are based in Istanbul
Introduction
The startup ecosystem in Turkey has undergone remarkable growth in recent years. With a dynamic wave of innovative entrepreneurs, strategic location between Europe and Asia, and a maturing support infrastructure, Turkey has positioned itself as one of the most promising startup hubs in the region.
To better understand this evolving market, we conducted in-depth research into Turkey’s VC and startup landscape to offer a comprehensive view of its major players, investment trends, regulatory shifts, and emerging challenges.
Over the past decade, Turkey has steadily climbed the ranks of global startup ecosystems. Cities like Istanbul — home to more than 70% of the country’s startups — have become regional powerhouses for tech and innovation. The city boasts over 100 accelerators, incubators, and growing founder-investor networks that span both Europe and MENA.
However, 2024 has been a more complex year for the Turkish ecosystem. After several years of double-digit growth in venture funding, the country experienced a sharp correction — deal volume declined -40%. These shifts are largely attributed to macroeconomic volatility, including sustained domestic interest rates, which have made both fundraising and investment deployment more challenging.
Despite this downturn, Turkey remains the second-largest VC market in the MENA region by total capital invested ranking just behind Saudi Arabia. This indicates that while early-stage deal activity may have cooled, investor confidence in the long-term potential of the Turkish market remains intact.
The investor landscape continues to be diverse. International firms such as Earlybird Venture Capital, 500 Emerging Europe, and Global Founders Capital remain engaged, though some have shifted their focus toward later-stage opportunities. Meanwhile, local VCs including 212, Revo Capital, and Collective Spark have been joined by emerging players like ScaleX Ventures and Logo Ventures, further enriching the funding ecosystem.
Turkey's startup journey has never been linear. Even in the face of economic headwinds, the country continues to nurture talent, attract international attention, and produce globally ambitious startups. With the right mix of financial discipline, policy support, and ecosystem collaboration, Turkey is well-positioned to weather its current challenges and remain a regional innovation leader.
Market overview
$24.2 bn
Total funding
10x
Growth since 2020
932
Total VC exits
3
Unicorns (see below)
Speaking of the top-funded businesses, e-commerce and fintech could be defined as the most developed industries. Mobile gaming has also emerged as Turkey’s standout export sector, with Dream Games and Peak Games leading global success stories. Crypto, meanwhile, has faced increased regulatory scrutiny and is no longer dominant.
One of the most popular spheres of startups in Turkey is e-commerce. Online marketplaces, such as Hepsiburada and Trendyol, have become some of the most successful startups in the country, offering a wide range of products to consumers.
Additionally, there has been growth in startups that offer online payment solutions, such as iyzico, which has gained a significant market share in the payment processing industry.
Another popular sphere of startups in Turkey is fintech. Turkey has a young and tech-savvy population that is open to using digital financial services, which has led to the growth of startups that offer mobile banking, investment management, and peer-to-peer lending platforms. For example, Ininal and Papara are two popular digital wallet startups that have gained a significant following in Turkey. As of 2024, Papara has over 17 million users and has expanded into neobanking services.
Turkey's startup ecosystem has also seen growth in the software and technology sectors. Startups in these industries are focused on developing innovative solutions for businesses and consumers. Some of the most successful startups in these sectors include Insider, which offers personalized marketing solutions and has expanded to 25+ markets, and Segmentify, which provides AI-driven e-commerce personalization services.
However, despite this progress, there are still several challenges that need to be addressed to unlock the full potential of Turkey's startup ecosystem:
– Access to funding remains uneven. While large startups attract international rounds, early-stage founders outside of Istanbul often struggle to raise capital due to limited angel and seed funding mechanisms.
– Bureaucracy and Red Tape: Turkey's bureaucracy and red tape can pose a challenge for startups, particularly for those looking to establish a legal entity or obtain necessary permits and licenses. Reforms have been introduced (e.g., simplified registration via e-Government), but foreign founders still face visa and banking hurdles.
– A lack of guides and instructions on the Turkish startup ecosystem, which makes it difficult for investors and entrepreneurs to make informed decisions and requires local advisors or incubator partners.
Editor's opinion on market characteristics
Pros & Cons of launching a startup in Turkey
VCs list
This list includes a diverse range of funds that invest in various stages of startup growth and in a variety of industries. From early-stage seed funding to growth-stage investments, these VC funds have a track record of supporting startups in Turkey.
For startups willing to scale on Turkey's market, this list can be an incredibly valuable resource. By having access to a curated list of top VC funds in the country, startups can easily identify potential investors who align with their business needs and goals. With the right funding, startups can accelerate their growth, expand their operations, and bring innovative solutions to market.
This list also provides a valuable opportunity for startups to gain insights into the investment landscape in Turkey. By understanding the different types of investors and their investment criteria, startups can tailor their pitches and strategies to increase their chances of securing funding.
Over 130 venture funds and 30 angels are gathered in the list – start to explore and send your pitch!
Unicorns in the Turkey's Market
E-commerce
Getir
A leading company that offers an ultra-fast delivery service for groceries and other household essentials. Customers can order items through the Getir app and receive them within minutes, thanks to the company's network of couriers.
Company's website
ADTech
Insider
A digital marketing and customer engagement platform that helps businesses deliver personalized experiences to their customers. Insider uses machine learning and AI to analyze customer behavior and provide real-time recommendations for marketing and sales campaigns.
Company's website
E-commerce
Trendyol
A leading e-commerce platform in Turkey that offers a wide range of products, including fashion, electronics, and home goods. Trendyol also provides a marketplace for third-party sellers to reach customers
Company's website
Gaming
Spyke Games
A mobile gaming company that creates casual games that are easy to play but offer engaging gameplay and challenging levels. The company is focused on creating games that are fun for players of all ages and skill levels.
Company's website
Gaming
Dream games
A mobile gaming studio based in Istanbul. The company is focused on creating high-quality, visually stunning puzzle games that are easy to play but challenging to master.
Company's website
E-commerce
Hepsiburada
One of the largest e-commerce companies in Turkey, offering a wide range of products, including electronics, fashion, home goods, and more. Hepsiburada has a strong presence in the surrounding regions, with a focus on providing fast and reliable delivery.
Company's websiteIncorporation
10 steps to incorporate
your startup
Incorporating a startup in Turkey can be a complex process, so it's a good idea to work with a consultant who can guide you through the process and ensure that you comply with all legal requirements.
1. Decide on your company structure
Before incorporating your startup in Turkey, you need to decide on the legal structure of your business. The most common structures for startups in Turkey are limited liability companies (LLC), joint-stock companies (JSC), and partnerships.
LLCs are the most popular structure for startups in Turkey. They require at least one shareholder and have a minimum capital requirement of TRY 50,000.
JSCs are typically used by larger companies that plan to go public. They require at least two shareholders and have a minimum capital requirement of TRY 250,000.
Partnerships are less common and are typically used for professional services firms such as law firms or accounting firms.
2. Choose a company name
Once you have decided on the legal structure of your company, you will need to choose a name that is not already registered in Turkey. You can check the name availability on the Turkish Trade Registry Gazette website (tobb.org).
The name of your company should not include any offensive or sensitive words, and it should not be similar to any existing trademarks or company names.
3. Prepare the articles of association
The articles of association are a legal document that outlines the purpose, structure, and regulations of your company. It must be prepared in Turkish and signed by all shareholders.
The articles of association should include the company's name, purpose, capital, shareholders, management structure, and other important information about the company's operations.
You can prepare the articles of association yourself or work with a lawyer or business consultant to ensure that they are drafted correctly and comply with Turkish law.
4. Obtain a tax number
Your company will need a tax number to operate in Turkey (check ivd.gib.gov.tr). You can obtain this from the tax office by providing your passport and other required documents.
5. Open a bank account
You will need to open a bank account for your company and deposit the minimum capital required by law. The bank will provide you with a deposit certificate that you will need to submit to the Trade Registry Office.
6. Register with the Trade Registry Office:
Once you have all the necessary documents, you can register your company with the Trade Registry Office. This can be done online or in person.
The registration process typically takes one to two weeks, and you will receive a trade registry number once your company is registered.
7. Obtain any necessary licenses and permits:
Depending on your business activities, you may need to obtain additional licenses and permits from the relevant authorities. For example, if you plan to open a restaurant, you will need to obtain a food service permit from the local municipality.
It is important to research the requirements for your specific industry and obtain any necessary licenses and permits before starting your business
8. Register with the Chamber of Commerce
You will need to register your company with the local Chamber of Commerce to obtain a business registration certificate. This certificate is required for opening a bank account, obtaining business loans, and participating in public tenders.
9. Register with the Social Security Institution
If you plan to hire employees, you'll need to register your company with the Social Security Institution and obtain a social security number. You will be required to make contributions to the social security system on behalf of your employees.
10. Obtain any other necessary approvals
Depending on your business activities, you may need to obtain additional approvals from other government agencies. For example, if you plan to import or export goods, you will need to obtain a customs clearance.
Overall, incorporating a startup in Turkey can be a complex process, and it is important to work with a lawyer or business consultant who can guide you through the process and ensure that you comply with all legal requirements.
The startup ecosystem in Türkiye has witnessed significant growth in recent years, with a rising number of innovative entrepreneurs, a surge in venture capital investments, and the emergence of supportive government policies.
Lately, Türkiye’s VC market has also been expanding rapidly, with an increasing number of domestic and international investors looking to fund promising startups in the country. [Link]
Let's discuss the collaboration
We plan to launch more reviews of the underexplored regions, such as Egypt, Indonesia and more.
Let me know if you are interested in this or other collaborations.
