Turkish Startups Raise $51M in January
The Turkish startup ecosystem kicked off 2026 by raising $51 million across 27 VC deals in January. Gaming and fintech led the funding rounds, but there was also strong deal volume in AI and significant activity from the government-backed Tubitak BiGG Fund, indicating continued early-stage support.
The January numbers reflect a cautious mood as macroeconomic developments remain the top concern for Turkish businesses in 2026. Following a prolonged monetary tightening campaign, the number of new companies established in January fell by 13.1% compared to December, indicating that high interest rates continue to impact new business formation. The fintech sector's leadership in January builds on a strong 2025, when Turkish fintech startups attracted a record $589 million. That year was marked by major deals for players like investment platform Midas, which raised an $80 million Series B, and payments company Sipay, which secured $78 million. The overall Turkish fintech market was valued at over $2.2 billion in 2025 and is projected to exceed $7.9 billion by 2034. Istanbul’s gaming hub, the second largest in the EMEA region, continues its momentum from 2024 when it attracted $71.6 million in VC funding. The ecosystem's maturity is built on massive historical rounds, including Dream Games' $468 million in total funding and Spyke Games' unprecedented $55 million seed round, which have established Turkish studios as global players. The deal flow in Artificial Intelligence comes as Turkey's AI startup count surpasses 1,188. The ecosystem is heavily focused on B2B enterprise solutions, but a significant capital gap persists; the median investment for diaspora-founded AI startups in 2025 was $2.4 million, compared to just $100,000 for domestic ventures. The upcoming GITEX Ai Türkiye event in September 2026 aims to accelerate investment in the sector. Beyond the leading sectors, deep-tech investment saw a significant uptick in 2025, rising 438% year-over-year by October. Meanwhile, climatetech is gaining traction as Turkey aligns with the EU's Green Deal. With the EU's Carbon Border Adjustment Mechanism taking full effect in 2026, expect increased investment in industrial decarbonization and energy security. The activity from the Tubitak BiGG Fund signals a crucial evolution in public R&D support. The recently established BiGG+ Venture Capital Investment Fund is designed to make follow-on seed investments into companies that previously received pre-seed BiGG grants, creating a more robust pipeline from research to commercialization.
