In Türkiye and around the world, the stars of the digital world have irreversibly changed after the coronavirus pandemic. In 2020, Türkiye got its first billion-dollar startups, altering the rankings of its most valuable companies and devising global competitive strategies in response to changing economic conditions driven by artificial intelligence, cloud technologies and data economics.

Speaking in Istanbul during the Turcorn Candidates Introduction Meeting, Industry and Technology Minister Mehmet Fatih Kacır said the government would provide TL 50 million ($1.56 million) in financing support to startups boasting a potential to become new billion-dollar worth ventures through the Global Competitiveness Program.

The event saw the announcement of 15 entrepreneurial ventures as potential Turcorns, a term Türkiye uses to describe Turkish unicorns.

Türkiye’s garage model

Kacır issued a call to technology-based ventures within the entrepreneurial ecosystem and stressed the government would continue "to offer contributions and mobilize our resources for you and your success."

Emphasizing the pivotal role of technology entrepreneurship in crafting new success stories in the economy, Kacır remarked: "We have increased the number of our technoparks from 2 to 101, raising the count of research and development (R&D) and innovation ventures in our technoparks from 56 to over 10,000. Through the TÜBITAK Bigg program, we have facilitated the establishment of 2,293 technology ventures."

Through Teknofest, Türkiye’s biggest technology and aerospace festival, the minister said they have steered millions of young individuals toward the path of technology development.

"Teknofest, which has transformed into a veritable venture factory, now gives birth to thousands of technology ventures annually. This is the unique 'garage model' of Türkiye. Compared to the dynamics of other countries' entrepreneurial ecosystems, we are collectively constructing a more equitable and democratic model within the Turkish entrepreneurial ecosystem," he noted.

Goal of 100,000 tech startups

Kacır reiterated that fostering more technology ventures and enabling thousands of young entrepreneurs to turn their dreams into projects, and projects into ventures is one of their primary objectives.

"In our National Entrepreneurship Strategy, we have set a goal of 100,000 tech startups by 2030. We will ensure the birth of thousands of new technology ventures from Türkiye each year, constructing a vast entrepreneurial ecosystem with 100,000 tech startups. A complementary aspect of this goal is to foster technology ventures from Türkiye that surpass a billion-dollar valuation," the official said.

"Technology ventures exceeding a billion-dollar valuation, referred to as 'unicorns' in the entrepreneurship literature, are also considered indicators of an entrepreneurial ecosystem's competitiveness. Thus far, seven Turcorns have surpassed the billion-dollar valuation mark, spanning gaming, software, e-commerce and fintech ventures. The fact that six out of these seven Turcorns have reached this milestone with the support and contributions of our ministry underscores that we are on the right track."

Turcorn candidates

The first 15 technology ventures selected for the Turcorn 100 Program have been identified, spanning various sectors from artificial intelligence, digital service technologies, cybersecurity, health care technologies and green transformation to financial technologies.

These include ACE Games developing mobile games, Albert Health Services focusing on chronic disease management, Appsamurai providing mobile application analysis and dissemination tools, ICT Buluş Bilişim (Bulutistan) offering cloud computing services, Colendi Artificial Intelligence and Big Data Technology Services as a financial services platform, Enqura Information Technologies enhancing digital customer experience, Fazla Gıda providing solutions to reduce food waste, Macellan Information Consulting as a venture studio, AVCR Information Technologies (Pixery) working on video and photo technologies, Picus Science Security developing cybersecurity solutions, RS Research focusing on cancer treatment, TechSign Information Technologies offering digital identity authentication solutions, Vispera Information Technologies developing image processing technologies in retail, VRlab Academy providing virtual reality solutions in education, and Wask Information Technologies delivering digital ad management.

New Pilot ventures preparing for global market

Applications for the new term of Pilot, the startup acceleration program of TT Ventures, the venture capital arm of one of Türkiye’s leading telecommunications and technology companies, Türk Telekom, are currently ongoing.

Ventures accepted into Pilot will be entitled to receive investments of up to $30,000 and cash support of up to TL 100,000 from Türk Telekom Ventures.

Last month, Pilot ventures participated in a specially designed entrepreneurship program at Stanford University in the United States. In the new term, these ventures can expect a very special program in America, where they will gain mastery of the global entrepreneurial vision, opening doors to growth in global markets.

Speaking during Entrepreneurship Week, Muhammed Özhan, general manager of TT Ventures, stressed their support for ventures for over a decade through the Pilot program.

"From collaboration opportunities to cash and investment possibilities, mentorship, access to investors and shared workspaces, our support extends to every aspect. We will continue to support our domestic ventures and stand by ventures venturing into the global arena," said Özhan.

Over a decade of continuity

Özhan added that they would provide support in many areas, from health care to education, productive artificial intelligence solutions to image processing and big data solutions.

"This support, which has continued unabated for over a decade through Türk Telekom Ventures' venture acceleration program, Pilot, extends to every aspect from collaboration opportunities to cash and investment possibilities, mentorship, access to investors, and shared workspaces. In this context, we recently included our Pilot ventures in the Entrepreneurship Program specially designed for Pilot entrepreneurs at Stanford University in the United States," he added.

Through the acceleration program, Özhan said they had provided approximately TL 32 million in cash support to a total of 111 ventures.

Fifty-nine of these ventures, both from local and international investors, have received capital totaling more than $35 million, providing them with the opportunity to develop their ventures.

"Through the workspaces we provide, both in our central building and at the Türk Telekom Ventures Entrepreneurship Center at the Atatürk Cultural Center, where we are the main supporter, we have also extended our contributions to physical environments," Özhan said.

Turkish fund leads $5.5M investment round in RemotePass

Türkiye’s first venture capital fund, 212, has invested in RemotePass, a human resources and financial technology company that enables companies to recruit, manage and pay remote workers.

RemotePass, aiming to discover talents in the Middle East and North Africa (MENA) region and connect them with the right companies, anticipates rapid growth in the Turkish market with this investment.

With a track record of investing in growing technology companies for 13 years and leading Türkiye’s entrepreneurship ecosystem, 212 is also focusing on startups in Central and Eastern Europe, as well as the MENA regions.

RemotePass secured a $5.5 million investment in a Series A funding round led by 212. Alongside the Istanbul-based fund, other participants in the investment round included Endeavor Catalyst, Khwarizmi Ventures, Oraseya Capital, FlyerOne, Access Bridge Ventures, A15, and Swiss Founders Fund.

With the investment, the United Arab Emirates-based company has reached a total investment size of $10 million. It aims to provide employers with convenience through services such as multi-currency expense management, insurance, card products for employees, leave tracking and bulk salary payments.

From customer to investor

Ali Karabey, co-founder of 212, emphasized the potential rapid growth of RemotePass in the Turkish market with the investment and said they see the platform as a key player in reshaping the future of business in the Middle East and Africa.

"The product growth and customer service displayed by RemotePass in 2023, after its pivot, truly impressed us and further strengthened our confidence in its team and business model. In fact, we were originally customers of RemotePass, using their services in our operational processes. We later decided to participate in investment rounds," said Karabey.

"Unlike similar initiatives focusing on America and Europe, RemotePass distinguishes itself by targeting specifically the Middle East and North Africa regions. It aims to streamline bureaucratic processes, often lengthy in these regions, and facilitate company establishment, insurance and human resources processes for remote workers."

New features

Kamal Reggad, co-founder and CEO of RemotePass, outlined their plans following the investment, saying the company aims to utilize the capital to increase its visibility and expand its operations in the Middle East, North Africa and Türkiye.

"We continue to work on expanding our customer portfolio in Türkiye, including brands like Insider. Additionally, we plan to add new features such as gift cards and marketplaces to our 'super app,' which offers solutions for employees under one roof. For companies, we will provide easy access to various payment options tailored to the needs of remote workers in the global market, including dollar/euro bank cards and private health insurance, through a single application."

Twozero Ventures’s portfolio expands to 19 startups

Twozero Ventures, Türkiye's first sports, media and entertainment venture capital fund, has shared data on its activities in 2023, during which it invested in a total of seven new startups, while also following up on its earlier investments in three ventures.

The engagements lifted the number of startups in the fund’s portfolio to 19, and it plans to continue its investments in 2024.

While the startups invested in by twozero Ventures provide employment for more than 1,500 individuals, 94% of their total revenues come from the global market. The startups in the portfolio have received over $260 million in investments to date, with the fund investing over $10 million in these ventures.

The fund’s first exit agreement marked the initial public offering (IPO) of Maçkolik, a pioneering online platform offering worldwide sports news, scores, predictions, and analytics, last year.

It recently sealed its second successful exit deal with the transfer of the streaming service BluTV to Warner Bros Discovery.

In 2021, Warner Bros Discovery, which had a 35% stake in BluTV through a capital increase, acquired all of the platform's shares with the approval of Türkiye’s Competition Authority (RK).

Achieving significant success with the BluTV exit, twozero Ventures realized the returns on its investment in less than four years.

New generation media

Yiğit Arslan, managing partner of twozero Ventures, said 2023 was a highly successful year for the company in terms of investments and exits.

"Exits are as much a part of our work as investments. With the successful BluTV exit in 2023, we achieved a total of two exits. Additionally, our investments in various startups in the sports, media, and entertainment sectors have contributed to creating a portfolio that can adapt to sectoral changes and focus on innovation," said Arslan.

"Trends such as the digitization of media, the increasing value placed on content production, and the productivity and technology-focused transformation of sports investments are among the key trends we follow at twozero Ventures. Our fund strategy is to invest in pre-seed, seed, and early-stage startups and then support them to create the highest possible impact," he added.