Market Insights Financial Capital Raising Traditional Capital Raising

Venture Capital - Turkey

Turkey

Turkey is projected to reach US$493.9m in Total Capital Raised within its Venture Capital market market by 2024.
The Early Stage market is expected to dominate the market with a projected volume of US$238.1m in the same year.
When compared globally, the United States is forecasted to generate the most Capital Raised, amounting to US$264,500.0m in 2024.
Turkey's Venture Capital scene is flourishing, with a surge in tech startups attracting substantial investments from both domestic and international players.

Key regions: China, Australia, India, Europe, Israel

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Analyst Opinion

The Venture Capital market in Turkey has been experiencing significant growth in recent years, driven by several key factors.

Customer preferences: Entrepreneurs in Turkey are increasingly turning to venture capital as a source of funding for their startups. This is due to the fact that venture capital firms not only provide financial support, but also offer valuable expertise and guidance to help startups grow and succeed. Additionally, venture capital allows entrepreneurs to retain control over their businesses, as opposed to traditional bank loans which often require collateral or equity stakes.

Trends in the market: One of the major trends in the Venture Capital market in Turkey is the increasing number of funds being raised by local venture capital firms. This is a result of both domestic and international investors recognizing the potential of the Turkish market and the opportunities it presents. As a result, venture capital firms are able to secure larger amounts of capital to invest in promising startups. Another trend in the market is the growing focus on technology startups. Turkey has a vibrant and rapidly growing tech ecosystem, with a number of successful startups emerging in recent years. This has attracted the attention of venture capital firms, who see the potential for high returns on investment in this sector. As a result, there has been a significant increase in the amount of venture capital funding being allocated to technology startups in Turkey.

Local special circumstances: Turkey's strategic location between Europe and Asia has positioned it as a gateway for businesses looking to expand into both markets. This has created a favorable environment for startups, as they can leverage Turkey's unique position to access a larger customer base and tap into diverse markets. Additionally, Turkey's young and dynamic population, coupled with its growing middle class, presents ample opportunities for startups in various sectors.

Underlying macroeconomic factors: The Turkish government has implemented several initiatives to promote entrepreneurship and support the growth of startups. This includes the establishment of technology development zones, which provide tax incentives and other benefits to startups operating within these zones. The government has also launched various programs and funds to provide financial support and mentorship to entrepreneurs. Furthermore, Turkey's strong economic growth and stable political environment have contributed to the development of the Venture Capital market. As the country continues to attract foreign investment and experience economic expansion, venture capital firms are able to tap into a growing pool of potential investment opportunities. In conclusion, the Venture Capital market in Turkey is experiencing significant growth due to the increasing preference of entrepreneurs for venture capital funding, the rise in funds raised by local venture capital firms, the focus on technology startups, Turkey's strategic location and favorable macroeconomic factors. These factors are driving the development of a vibrant and thriving venture capital ecosystem in Turkey, providing ample opportunities for startups to grow and succeed.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.