While Istanbul may not be the obvious choice when looking for locations to launch a successful tech company, there is no denying that the region is establishing itself as a hotbed of innovation and entrepreneurship.
If you're living in or near Istanbul and are unsure if it's the right place to start your company, we've compiled a list of the top reasons why it is the ideal city to build a startup.
An Expansive Online Retail Market
For entrepreneurs looking to break into the online retail space, Istanbul is hard to beat. In an article by Emre Peker titled “Despite Crackdown, Turkey’s Startups See Opportunity”, Turkey has a very young population, an $820 billion economy, and about 38 million Internet users with a web penetration rate of almost 50%. Just look at the numbers:
- According to the Interbank Card Center set up by Turkish banks, credit card spending online users increased by 37% last year alone
-
Out of 10 million Internet shoppers, 75% are aged 18 to 35
- According to Markafoni, a leading online fashion company, the online retail space has grown an average 35% from 2008 to 2013, and is forecast to grow at about half that pace through 2016
The Startup Scene is Growing
Despite arriving late on the international startup scene, Istanbul is quickly becoming a safe haven for entrepreneurs. Here’s what Naz Özertuğrul, head of Atomico's value creation team in Turkey, has to say about the rise of entrepreneurial activity in Istanbul:
Historically there's been a lack of investors with deep technology experience, but now there are growth investors taking an interest as well as successful Turkish entrepreneurs reinvesting as angels."
Also, Wired magazine recently compiled a list of Europe’s hottest startups, ten of which were from Istanbul: Hemen Kiralik, Onedio, Vivense, Iyzico, Ininal, Armut, Modanisa, BiTaksi, Buldumbuldum, and Hotelrunner/Cloudarena.
It's a Great Place for Female Entrepreneurs
Not only is Istanbul accommodating entrepreneurs, it is also a great place for female entrepreneurs to get started. The European Bank for Reconstruction and Development (EBRD), in partnership with the EU and Turkey, recently announced that it will provide 338 million euros to female-led companies in Turkey within the framework of a new program, Finance and Advice for Women in Business. News of the development was covered by Didem Atakan in a Daily Sabah article titled “Turkish women entrepreneurship empowered with €338 mln”. The article describes how the program aims to finance 15,000 female-led businesses through Turkey, while also offering numerous training and educational services to help females run their companies.
An Abundance of Resources
Istanbul, as well as Turkey as a whole, has no shortage of accelerators, conferences, and workshops geared towards entrepreneurs, as well as startups of all development stages. Here is just a taste of what the region has to offer:
-
Startup Istanbul - Istanbul’s leading startup event, Startup Istanbul brings together leading startups, internet companies, business angels and venture capitalists from Asia and Europe.
-
Startup Live Istanbul - Here, participants can pitch, form a team, work, get feedback from startups, experts and mentors, and present what they have achieved in front of experts from all around Europe.
-
Istanbul University’s World Conference on Technology, Innovation and Entrepreneurship - This multidisciplinary event tackles business world and social needs with important scientific developments in technology, innovation and entrepreneurship in the field of life and health sciences, physical and engineering sciences and social sciences.
- Startupbootcamp Istanbul Accelerator - Startupbootcamp Istanbul is a 3-month mentor-driven accelerator program that provides a massive amount of support and connections to facilitate a startup's growth.
If you help launching a company in Turkey, apply to the Istanbul Founder Institute today!
(Panoramic view of the new Istanbul cityscape image by Shutterstock)
