Turkish startups secured $211 million in disclosed equity funding across 91 rounds in the first half of 2025, according to startup intelligence platform Startups.watch. The six-month period saw fintech, gaming, and artificial intelligence as the most heavily funded verticals, though deal activity overall fell to its lowest level in nearly four years. The report underscores a persistent challenge in the ecosystem, as startups continue to struggle in progressing from seed to Series A and B stages. In the second quarter alone, just five Series A and B deals were closed compared to 36 seed-stage investments, highlighting a funding gap that has long been viewed as a structural weakness in the Turkish market.
Fintech drew the highest share of investment, with companies like Sipay and Fimple responsible for nearly all of the sector’s $97.1 million total, accounting for 93 percent of fintech funding. Gaming, meanwhile, remained one of the most resilient and diversified investment areas, with Bigger Games and Good Job Games closing significant rounds and several other studios also securing capital. Artificial intelligence startups followed closely, though on smaller overall amounts compared to fintech and gaming. Despite the reduced number of deals overall, international participation appeared to rise. Foreign investors were involved in 17 rounds, with seven targeting gaming companies, reinforcing the sector’s appeal to global capital and Turkey’s position as a leading hub for gaming innovation.
Venture capital activity in Turkey remained cautious. No new corporate venture capital funds were announced, while 45 new venture capital investment funds were authorized, bringing the cumulative total to 499. The slower pace of new fund creation was largely attributed to increased minimum fund size requirements. Equity-based crowdfunding also experienced a slowdown, with only 11 successful campaigns and 12 active platforms reported. Representation of women entrepreneurs showed little movement compared to previous years. Female-founded startups accounted for about 19 percent of funded companies and made up just 12 percent of new entrants during the first half of 2025. Still, Istanbul continued to strengthen its global profile as a startup hub, earning second place on Startup Genome’s ranking of emerging ecosystems worldwide, behind only Lagos.
On the mergers and acquisitions front, Uber’s acquisition of Trendyol Go dominated activity, representing 81 percent of the $864 million in total secondary and acquisition transactions reported for the period. The deal highlighted growing consolidation in Turkey’s delivery and logistics sector and marked one of the most significant exits for the ecosystem to date. A major Dream Games transaction, involving both debt financing and secondary sales, is expected to close in the third quarter, which could further elevate deal value in the months ahead. Taken together, the funding and M&A activity in H1 2025 reflects a cautious but resilient market, where fintech and gaming continue to draw strong investor interest while structural gaps in later-stage funding persist.
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