Turkish tech start-ups hit milestones, highlight revenue opportunities

Turkish tech start-ups have been making headway this year, with the country producing its first unicorn, and the resulting trends can point the way for IT leaders looking for revenue-growth opportunities.

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The tech start-up scene in Turkey is inarguably in its nascent stages. Despite the economic downturn brought on by the COVID-19 crisis, though, Turkish start-ups have been making headway this year, and the resulting trends can point the way for tech leaders looking for revenue-growth opportunities.

Compared to Middle East counterparts like the UAE or Saudi Arabia, the total value of investments in Turkish start-ups is still relatively low. But Turkish start-ups have seen some major milestones in the past few months, causing the regional tech professionals to take notice.

Turkish start-ups garnered US$80 million in investments in the first nine months of 2020, a figure that is nearly 80% of start-up investments in the country for the entire 2019 fiscal year, according to the H1 2020 Turkey Venture Investment Snapshot report from Magnitt, an online platform that connects entrepreneurs with venture capital funders, support systems and talent.

The first-half 2020 figure is a record for Turkey, according to the report. Though the value of investments did increase, the number of deals did however fall sharply, down by almost half in comparison to 2019.

"This consolidation is partly a function of an evolving and maturing ecosystem and partly a function of investors skewing to favour large-ticket investments in more established start-ups against the backdrop of COVID-19 – a trend that is consistent with MENA's start-up ecosystem in H1 2020," Magnitt reported.

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