- Tfcrkiye startups raised about $589 million across 306 deals in 2025, with fintech ($219.7 million) and gaming ($180.9 million) capturing roughly two-thirds of capital.
- AI led deal count (~81 rounds, ~25%) but attracted only about $36.4 million, signaling many small early-stage raises.
- Late-stage funding effectively disappeared as Series C+ rounds fell to near zero, highlighting a scaling-capital gap.
- Investment was highly concentrated as seven startups accounted for about 62% of total funding.
Read More
Türkiye’s startup investment landscape in 2025 has been shaped by two dominant sectors—fintech and gaming—combining for around two-thirds of total capital deployed. Fintech reached an all-time high investment level of $219.7 million, while gaming followed at $180.9 million. This dominance suggests that investor confidence is strongest in sectors with near-term revenue scalability, clear monetization models, and global market reach. Conversely, although AI leads in number of deals (81 in 2025, ~25 % of total) its capital capture remains modest—~$36.4 million—underscoring investors’ caution when it comes to high-risk or capital-intensive innovation models.
The concentration of capital is striking: seven startups—Midas, Good Job Games, Sipay, EasyCep, Cyper Games, Bigger Games and Getmobil—made up about 62 % of investment volume. Fintech’s record-breaking investment haul was heavily influenced by large rounds from Sipay and Midas. This suggests a thinning of mid-tier investment activity and a risk-tilted ecosystem heavily reliant on headline deals.
A major structural risk emerges from the collapse of Series C and later-stage financing, which “fell to zero,” per the reporting. Without more mature funding vehicles, scaling companies domestically may face pressure to relocate or depend heavily on foreign capital for growth.
Regulatory and policy developments appear to support the ecosystem: public institutions (Türk Telekom, Işbank, Akbank, Sabancı, Esas) are making strategic investments, and government is emphasizing infrastructure around AI, data centers, and fintech-enabled technoparks (e.g., one within Istanbul Financial Center). Still, challenges persist: early-stage deal sizes in seed rounds are comparatively small; foreign investors appear more interested in mature companies; and there is uneven geographic distribution of deals, with Istanbul, Ankara, and İzmir continuing to dominate.
Strategic Implications:
- Domestic VCs and corporates could gain first-mover advantage by addressing the late-stage financing gap through funds or structured vehicles targeting Series C+, supporting scaling locally rather than exporting talent abroad.
- Fintechs with proven metrics, and gaming studios with global IP potential, are likely to attract foreign capital—capital flows might increasingly favor those with international reach rather than purely domestic exposure.
- The strong count but low volume in AI suggests opportunity for incubators or funds that can bundle AI opportunities or offer capital-intensive support to lift average raise sizes.
- Policy support via technoparks, foreign currency incentives, and public-private partnerships will likely be key levers; monitoring regulatory clarity, tax, employment laws, and foreign investment frameworks will matter materially.
Open Questions:
- Can Türkiye mobilize enough late-stage funding—both domestic and foreign—to sustain growth beyond seed and Series A?
- Will regulatory policies keep pace with investor expectations, particularly around foreign exchange risks, capital repatriation, and tech export incentives?
- Is there sustainable demand for non-fintech/gaming verticals (like AI, biotech, deep tech) to pull up the deal sizes, and will investors diversify?
- How will talent retention fare amid high-performing startups relocating abroad or founders listing overseas?
Supporting Notes
- Total investment in Türkiye’s startups in 2025: ~$589 million across 306 funding rounds.
- Fintech investments reached ~$219.7 million, beating 2024’s ~$196.6 million.
- Gaming sector raised ~$180.9 million in 2025.
- AI startups: ~81 deals (~25 % share) but only ~$36.4 million raised.
- Seven companies (Midas, Good Job Games, Sipay, EasyCep, Cyper Games, Bigger Games, Getmobil) accounted for ~62 % of total investment volume.
- Series C and later stage funding in 2025 “effectively fell to zero”.
- Domestic institutions like Türk Telekom, Işbank, Akbank, Sabancı Holding, Esas Holding were active strategic investors in the ecosystem.
- FDI inflows grew: $12.4 billion in first 11 months of 2025 (up ~27 %) with expectation of $14.4 billion total for year.