Business

Türkiye’s startup ecosystem accelerates growth with record investments and rising global influence

Wednesday, 19 November 2025 8:16AM UTC

Turkey’s venture scene is surging forward with historic funding, global market integration, and increasing foreign investor confidence, positioning the country as a key regional tech hub, despite ongoing challenges.

Türkiye’s startup ecosystem is gaining significant momentum, emerging as a vibrant hub for innovation and entrepreneurship that increasingly draws foreign investors. A confluence of factors, including a tech-savvy youthful population, government-backed innovation programs, and expanding digital infrastructure, is positioning the country as a promising regional centre for technology-driven ventures.

The transformation of Türkiye’s startup landscape has been especially pronounced since the mid-2010s. According to KPMG Türkiye’s 2024 Startup Investments Review, there were 313 investment rounds throughout the year, totalling approximately $1.3 billion in funding. However, other sources report even higher figures: Anadolu Agency highlights a fivefold surge in startup investments in 2024, reaching $2.6 billion, primarily fuelled by fintech deals, which led with 31 transactions. Notably, the acquisition of a majority stake in Hepsiburada by Kazakhstan’s Kaspi.kz for over $1.1 billion marked a landmark transaction, underscoring the escalating international interest in Türkiye’s startup market.

Istanbul stands out as the nation’s innovation epicentre. While KPMG noted Istanbul’s ecosystem moving from 49th to 47th globally in 2024, data from Statista and the SETA report paint a more nuanced picture, positioning Istanbul 51st worldwide in 2024 and highlighting its rise from 80th in 2020. Importantly, SETA’s analysis also places Istanbul just outside the top 10 European startup ecosystems, ranking 11th and rapidly closing in on cities like Madrid. These rankings reflect the city’s accelerating competitiveness and its growing stature as a global startup player. Meanwhile, Ankara, Türkiye’s capital, is also making strides, ranking 80th worldwide, signalling increased entrepreneurial activity beyond Istanbul.

The influx of international capital is a critical driver of this growth. Invest in Türkiye’s 2024 analysis reveals that foreign investors participated in 44% of all investment rounds, with significant input from Europe and the Gulf region. This trend continues into 2025, with a 12% increase in foreign investor participation reported by Startups Watch, reflecting sustained confidence in Türkiye's startup ecosystem despite macroeconomic challenges. The nation’s strategic geographic location, young workforce, and expanding tech market further underpin investor optimism.

Government initiatives play a crucial role in fostering this entrepreneurial momentum. Over 8,000 technology-focused companies operate within 96 active technoparks across Türkiye, benefitting from tax incentives and R&D infrastructure in Technology Development Zones overseen by key government bodies such as the Ministry of Industry and Technology. The Scientific and Technological Research Council of Türkiye (TUBITAK) facilitates early-stage venture growth through programs like the 1512 Individual Young Entrepreneur (BIGG) grant. More recently, the Technology-Focused Industrial Initiative Program, launched in 2024, aims to bolster R&D funding and encourage long-term investment strategies.

Türkiye’s startups are increasingly global in outlook. Approximately 35% of Türkiye-based startups sell their products directly to European markets, a shift from a primarily domestic focus to international market integration. ScaleX Ventures reports that over 150 Turkish startups serve European customers, enabled by cross-border partnerships, export-driven business models, and participation in international accelerators. This global orientation is evident especially in sectors such as gaming, fintech, and artificial intelligence, where Turkish products are gaining traction overseas.

Despite robust growth, the ecosystem faces structural challenges. Early-stage startups often struggle to secure funding due to a scarcity of dedicated early-stage investor networks, a vulnerability highlighted in both domestic reports and foreign investment analyses. Economic volatility and regulatory uncertainties, particularly around data protection laws and emerging technologies, also pose hurdles for investors. Additionally, ScaleX Ventures points to a persistent brain drain, signalling difficulties in retaining highly skilled tech professionals essential for sustained innovation.

For long-term sustainability, experts emphasise the need for clearer regulatory frameworks and consistent government policies to improve legal predictability. Investor trust remains paramount, with industry observers noting that economic stability and transparent sectoral regulations will be decisive factors for future capital inflows.

In terms of funding dynamics, ventures increasingly look beyond mere capital injection to strategic partnerships that provide mentorship and facilitate scaling. Accelerator programmes and university incubators play an expanding role, enabling startups in less central regions access to both guidance and financial resources. This comprehensive support ecosystem enhances startups’ ability to develop competitive, globally oriented business models.

Recent data on investment volumes further underscores the sector’s vitality. According to Daily Sabah, Turkish startups raised $211 million in the first half of 2025 alone, bolstered by Istanbul’s ascent to third place globally among 'Emerging Ecosystems' as per the Startup Genome report. This rapid advancement signals a robust trajectory that, if supported by stable policies and continued international collaboration, could firmly establish Türkiye as a regional technology powerhouse.

In summary, Türkiye’s startup ecosystem is at a pivotal moment, characterised by impressive investment growth, expanding international reach, and increasing sophistication in venture development. However, realising this potential fully will require addressing financial, regulatory, and talent challenges to sustain confidence among both domestic entrepreneurs and foreign investors alike.

📌 Reference Map:

^[1] (Türkiye Today) - Paragraphs 1, 2, 4, 5, 6, 7, 8, 9, 10, 11
^[2] (Anadolu Agency) - Paragraphs 2, 9
^[3] (Daily Sabah) - Paragraph 12
^[4] (Statista) - Paragraph 3
^[5] (SETA) - Paragraph 3
^[6] (KPMG Türkiye Q2 2024 report) - Paragraph 2
^[7] (KPMG Türkiye 2024 report) - Paragraph 2, 9

Source: Noah Wire Services

More on this

https://www.turkiyetoday.com/business/foreign-investors-eye-new-opportunities-as-turkiyes-startup-ecosystem-gains-momentum-3210012 - Please view link - unable to able to access data
https://www.aa.com.tr/en/economy/turkish-startup-investments-soared-fivefold-in-2024-report/3488904 - In 2024, Turkish startup investments experienced a significant surge, increasing fivefold to $2.6 billion, as reported by Anadolu Agency. This growth was primarily driven by fintech firms, which led the sector with 31 deals. The total number of transactions also rose from 297 in 2023 to 331 in 2024. The largest transaction was the acquisition of over 65% of Hepsiburada by Kazakhstan-based Kaspi.kz for $1.1 billion, marking a substantial milestone in the Turkish startup ecosystem.
https://www.dailysabah.com/business/tech/turkish-startups-raise-211-million-in-h1-2025 - In the first half of 2025, Turkish startups secured $211 million in funding, as reported by Daily Sabah. This achievement was highlighted during the 'Türkiye Startup Ecosystem Q2 2025 Event,' where Istanbul's rapid rise on the global stage was emphasised. According to the Global Startup Ecosystem Report published by Startup Genome in June 2025, Istanbul ranked third globally in the 'Emerging Ecosystems' category, marking a significant advancement from its previous position in 2024.
https://www.statista.com/statistics/1488874/turkey-startup-ecosystem-ranking-by-city/ - In 2024, Istanbul's startup ecosystem was ranked 51st worldwide, according to Statista. This ranking reflects the city's growing prominence in the global startup landscape. The capital city of Turkey, Ankara, placed second on the list, with a ranking of 80th, indicating a strong presence of startup activity beyond Istanbul.
https://www.setav.org/en/assets/uploads/2025/04/r263en.pdf - According to a report by SETA, in 2024, Istanbul's startup ecosystem improved its global ranking, rising from 80th place in 2020 to 51st in 2024. This advancement places Istanbul just outside Europe's top 10 startup ecosystems, currently ranking 11th, trailing Madrid by less than 5% in total score. The report highlights the city's rapid growth and increasing competitiveness in the global startup arena.
https://kpmg.com/tr/tr/home/gorusler/2024/08/turkiye-startup-yatirimlari-2024-ikinci-ceyrek.html - KPMG Türkiye's report on 'Türkiye Startup Yatırımları' indicates that in the second quarter of 2024, startup investments in Turkey increased in line with global trends, with transaction volume rising to $558.8 million. This figure is approximately four times higher than the $149.9 million recorded in the same quarter of 2023. The report also notes a decrease in the number of transactions from 77 to 58, suggesting a consolidation trend in the market.
https://kpmg.com/tr/tr/home/insights/2025/02/kpmg_turkiye_startup_yatirimlari_2024.html - KPMG Türkiye's 'Startup Yatırımları 2024' report highlights the largest transactions in Turkey's venture capital ecosystem in 2024. The top deal was the acquisition of a 65.4% stake in Hepsiburada by Kazakhstan's Kaspi.kz for $1.127 billion. Other significant investments included Insider's $500 million funding round and Getir's $250 million raise, underscoring the robust growth and international interest in Turkey's startup sector.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: The narrative is recent, published on November 19, 2025, and presents up-to-date information on Türkiye's startup ecosystem, including data from 2024. No evidence of recycled or outdated content was found.

Quotes check

Score: 10

Notes: The narrative does not contain direct quotes, indicating original content.

Source reliability

Score: 8

Notes: The narrative originates from Türkiye Today, a news outlet with a limited online presence and no verifiable reputation. This raises concerns about the reliability of the information presented. The lack of a robust online presence makes it difficult to assess the credibility of the source.

Plausability check

Score: 7

Notes: The claims about the growth of Türkiye's startup ecosystem and foreign investment align with reports from other sources, such as Anadolu Agency and KPMG Türkiye. However, the lack of direct citations to these reports in the narrative raises questions about the accuracy and verification of the information. The absence of specific data points and direct quotes further diminishes the narrative's credibility.

Overall assessment

Verdict (FAIL, OPEN, PASS): FAIL

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent and original content but originates from a source with limited reliability and lacks direct citations to reputable reports. The absence of specific data points and direct quotes further diminishes the narrative's credibility. Given these factors, the overall assessment is a fail with medium confidence.

Startups
Turkey
International Investment