According to the report “Technology Investment Opportunity in Turkey” prepared by 212 Venture Capital, the first investment fund of Turkey, the EU’s most important source of talent is Turkey.
The first investment fund of Turkey, 212 Venture Capital started their operation a while back, with 30 million dollars of funds. 212 Venture Capital made investments in various enterprises, with their latest being a 1.5 Million Euros of investment to OmmaSign, a digital signage software platform, in March. “Our goal is to reach the Balkans and Middle East, we think that Turkey will be a steppingstone between these two regions” stated Numan Numan, one of the founding partners of the company. Their 22 page long “Technology Investment Opportunity in Turkey” report is mainly focused on the opportunities of technological investments in Turkey. There are also very detailed information belonging to developments of April 2019.
Investment Ecosystem in Turkey is Very Healthy
According to the report, there are 76 million mobile and 60 million web internet users in Turkey. Urbanization is up to %75, and the average age is 31. One of the main aspects which the report emphasizes, is the vast talent pool and low salaries. On average, developers in Turkey compared to their European counterparts have lower salaries. %3 of EU’s workers in technological fields were Turkish last year. To sum up, Turkey is the most important source for talent for EU.
Data from the report suggests that the development of Turkish technological ecosystem gained substantial speed in the last 10 years. There are 463 accredited angel investors, 10 accelerating investment funds, 24 angel networks, 50 hatching centers, 770 R&D centers and 63 technoparks in Turkey. The investments reached its peak in 2017 but are on the decline since 2018. An important detail the report sheds light to, is the amount of time needed between receiving investment and exiting for companies. On average, it takes 3.8 years for an enterprise to exit after receiving investment in Turkey. If we look at the highest 10 list, it goes up to 5.5 years. The biggest 10 exits in Turkey are Trendyol, Yemeksepeti, OpsGenie, Gram Games, GittiGidiyor, Markafoni, Iyzico, Pozitron, Citus Data and Arvento, respectively.
When we take a look at the return of investments, the ecosystem looks very healthy. Even though there was a decline in 2016 and 2017 because of the postponed exits, there was a substantial improvement in 2018. In the first quarter of 2019, a return of 200 million dollars was attained with an investment of 26 million dollars. 212 Venture Capital have invested in 12 enterprises, including HotelRunner, Iyzico and Insider. They have made a 23 million dollars of investment in total and in return created 440 million dollars worth of value.
To access the complete report: https://www.slideshare.net/212vc/technology-Investment-opportunity-in-turkey