How Are Digital Startups Diversifying Turkey’s Economic Ecosystem?
Turkey's economic expansion and diversification are available in reaction to the nation's economy slipping into recession the very first time in on the decade, with market analysts attributing this to rising inflation and interest rates because the lira crashed, losing 40% of their value against the dollar. New economic steps announced in August 2021 aimed to secure economic growth at 3-4%, decrease inflation from 15% to single digits and cut your budget deficit to around 1.5% of GDP.
This announcement aimed to address the stark indications of investor unease with the country's economic direction. On the national level, central banks hiked Turkey's rates of interest by 500 basis points and foreign investment fell from nearly $18 billion in 2021 to only $11 billion in 2021. On an individual level, CFD traders by having an IG trading account profited from falling lira prices, as investors went long around the USD/TRY currency pair.
Turkish Testimonials from 2021
Turkish startups, however, remain a success story for the Turkish economy, attracting lb130 million in private equity finance investments and private investments. An extremely growing sector of the market, the Turkish Science Foundation is investing large sums on the market, while large companies are investing via their venture funds.
The innovation of Turkey's startups has given the country global recognition. Well over 131,500 applicants, Turkish startup Dine & Pay was recently voted as one of startupturkey.com‘s four 2021 winners, placing fourth behind entries from Denmark, Indonesia and Mexico. Of the 10 finalists, three entries were Turkish: Dine & Pay, Procube IoT and Mantiscope.
As a result, these companies should be watched closely over the next 12 months, as they are likely to catch the attention of mentors, private investors and global companies.
Further Diversification Ahead in 2021?
Looking towards the future, it's likely that we will see even greater co-operation between startups, venture capitalists and the Turkish government. While the past few years happen to be seen as a Turkey losing its top entrepreneurs and programmers to Silicon Valley, the continuing success of Turkish startups, allied with the international recognition they're receiving, implies that further development of the sector, particularly in Istanbul, seems inevitable.
Venture capitalists still circle some of the country's hottest startups, including marketing platform Insider (who acquired some funding from Sequoia Capital in 2021), virtual reality gaming developer Teleporter and FinTech startup Iyzico.
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