In a talk at last week’s Webrazzi Summit in Istanbul, my partner Hasan shared his observation that 2016 has been a year where other investors in Turkey have taken over where we left off. Specifically, although the dollar volume of our investments has slowed down in 2016 as we focus the bulk of our remaining budget on our roughly 30 active Turkish investments, other investors in Turkish startups are more than making up for our slow down.
I hope to post the full video of the talk when it’s available, but in this post I want to share the data which supports Hasan’s observation, together with some conclusions from this data. The figures for the total dollars invested in Turkish startups for each year come from Startups.Watch.
In 2012, Hasan invested $2.0M (or 7%) of the total $28.3M that was invested in Turkish startups. $26.3M came from other investors.
In 2013, we invested $32.7M (or 57%) of the total $57.6M. $24.9M came from other investors.
In 2014, we invested $9.7M (or 31%) of the total $31.1M. $21.4M came from other investors.
In 2015, we invested $20.8M (or 37%) of the total $55.7M. $34.9M came from other investors.
And in the first 9 months of 2016, we invested $1.2M (or 2%) of the total $49.1M. $47.9M came from other investors.
If the investment activity we’ve seen in Turkish startups during the first 9 months of the year continues at the same pace during the final 3 months of the year, the year will close with north of $65M in total investments.
We can draw two conclusions from this data.
The first is that 2016 is on track to be a record year for the dollar amount invested in startups in Turkey. Despite the political and resulting economic uncertainties that the country has faced throughout the year, this shows just how strong and resilient Turkish startups are.
The second conclusion is that, as Hasan said, other investors are more than making up for the decline in our investment activity. In fact, the dollar amount invested by other investors in Turkish startups has grown significantly during each of the last 3 years, from $21.4M in 2014 to $34.9M in 2015 to $47.9M during the first 9 months of 2016. If this pace holds, other investors will have invested over $63M in Turkish startups in 2016.
Taken together, these conclusions make us very happy.