Gaming and fintech led the startup investments across 39 rounds
Venture capital (VC) investment in Turkey’s startup ecosystem fell to one of its weakest levels in recent periods in the first quarter of 2026, even as gaming and fintech continued to anchor activity, according to Startups.watch, a Turkish startups intelligence platform.
A total of $64 million was invested across 39 funding rounds in the January–March period, data from Startups.watch revealed.Adjusted for two large deals totaling $40 million, the quarter marked a notable slowdown in overall funding momentum.(By the way I have a story here about startups investments in Turkey)
Excluding government-backed BiGG (Individual Young Enterprise) investments, only 23 startups secured funding during the quarter, underscoring a contraction in deal activity.
The report highlighted that gaming remained the top sector by investment volume, followed by fintech, continuing a trend seen in previous years. However, early-stage artificial intelligence (AI) startups led in deal count, signaling growing interest despite limited impact on total funding so far.
Globally, the picture diverged sharply. Investment activity in developed European markets remained resilient, largely driven by AI. In the United Kingdom, four of the five largest deals were AI-related and together accounted for more than half of total funding. Similar trends were observed in Germany and France, where top AI deals represented a significant share of quarterly investment.
Startup investments in MENA declined amid ongoing geopolitical tensions
By contrast, funding declined across the Middle East and North Africa region amid ongoing geopolitical tensions, with Turkey among the markets most affected, the report noted.
Equity crowdfunding activity in Turkey also weakened. Although two new platforms launched their first campaigns, only five campaigns were successfully completed in the quarter, raising a combined $1.2 million, per the report.
On the exits front, the acquisition of Loom Games by Scopely at a valuation exceeding $1 billion increased the number of Turkish startups reaching unicorn status to seven. Meanwhile, the acquisition of Kuzu by Apple stood out as the most notable exit involving the Turkish diaspora.
Turkish-founded startups abroad raised $630 million across 18 rounds during the quarter, with Sierra Space accounting for the majority of that total.
Despite the slowdown in funding, the number of venture investment funds (VCIF) in Turkey continued to grow. Twenty-one new VCIFs received regulatory approval in the first quarter, bringing the total number of active funds to 570.
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