A startup ecosystem is a network of group of people and related organizations and key stakeholders like entrepreneurs, investors, mentors, incubation centers, accelerators, co-working spaces, universities, corporations, government bodies, banks, and business supporting service providers that booster and support the entrepreneurs for successful businesses to run it and grow efficiently. What are the benefits of a strong startup ecosystem, and what is the state of its development in Turkey?
Ecosystem can provide funds, knowledge and experiences which is more important for startups. Having more startups, sharing and exchanging ideas and experiences among each other in an ecosystem will help avoid mistakes and the risk of failing. Startups also need to grow and scale their business globally. When entrepreneurs get advice and support from successful companies and corporates in the field will certainly be a success factor.
The Turkish Startup ecosystem is becoming a key regional and global startup hub, and very promising as the job market becomes more challenging. Let's take a look at different players in the Turkish startup ecosystem, as outlined in the state's 2020 status report:
Entrepreneurs: Talented and experienced startups are growing in Turkey due to the support getting from the ecosystem and the Technology Transfer offices established at the universities.
Investors: Since 2010, Venture Capital and Angel Investors have numbered dramatically and accelerated with the governmental incentives and tax reduction to accredited angel investors who invest in startups. The value of startup investments are expected to improve in the coming years as the Turkish startups find the courage to compete in the global market.
Accelerators: Now counting 57, including eight banks that launched fintech-based accelerators programs.
Co-Working Spaces: It is a unique and affordable working environment, and provides not only space but creates startup culture surrounding like-minded entrepreneurs and creative thinkers. The number has reached 44 at end of 2019 with over 5000 startups, scaleups and freelancers renting spaces in these communities
Technoparks: It is a gathering place for technology and innovation-based companies, and Turkey now counts 61 Technoparks across the country.
Governmental Authorities: The state organizations such as KOSGEB, TUBITAK and Ministry of Treasury and Finance (MTF) are very active in supporting startups and investors in the ecosystem. Government offer different programs and policies to support startups including startup globalization support.
Corporations: The Turkish private sector is playing a vital role in the startup ecosystem, organizing and sponsoring many events and activities to support the growth of the startups.
Turkish Startup Ecosystem Map, 2020 by Startups Watch
For any ecosystem to be successful, many factors are essential such as having talented and innovative entrepreneurs through education supported by the government. Funding is a factor that is required to link startups with investors and financial resources as such the demand and need for entrepreneurial education to be part of the university programs as well as high school will for certain boost the Turkish startup ecosystem to be of the top worldwide.
At The Startup Club, we are dedicated to supporting global entrepreneurship, and we are proud to present our Global Scaling for Turkish Startups: Online Investment Forum. The event, taking place on October 15th, presents a unique opportunity to connect with Turkish Startups, Scaleups and SMBs pitching to investors and experts who are seeking investment and Global Scaling. Learn more and RSVP via the link.
The Startup Turkey Club Manager
Serial Entrepreneur, Business Adviser and Global Mentor