In the world of startups, not only the success of new ventures but also the performance of investors is scrutinized. Studies that examine top venture capital firms reveal that early-stage investments tend to deliver the highest returns.
According to the HEC Paris-Dow Jones Venture Capital 2023 Performance Ranking, Earlybird Digital East Fund achieved the top performance score among venture capital funds.
Earlybird, co-founded by Turkish investors such as Cem Sertoğlu, made strategic early-stage investments that paid off significantly. For example, Earlybird Digital East Fund’s 2015 investment of $1.6 million in UiPath was a major success, cementing its position as a leading fund.
Alignment, sector focus
Healthcare and technology are top sectors for venture capital, while countries like China are diversifying their investments to include consumer products in response to global needs.
Venture capital firms leverage their region’s innovative ecosystems to support startups with the potential for high growth. Europe’s mature startup ecosystem and innovation-driven economy contribute significantly to the success of its venture capital funds.
European health care-focused VCs, such as Medicxi Ventures, and China’s consumer product investments highlight how regional expertise and sectoral diversity are driving performance in venture capital.
Europe, Asia lead way
The 2023 ranking shows a more balanced global investment landscape, with firms from regions such as Europe, Asia, and Australia playing a larger role compared to previous years, when U.S.-based firms dominated.
This shift broadens international investment opportunities and highlights the growing importance of global diversification and emerging markets in venture capital.
Firms from regions like Luxembourg and Hong Kong are climbing the ranks, underscoring the sector’s increasing competitiveness.
These factors and country-specific advantages reflect a more competitive and globalized venture capital landscape, offering investors a wider range of opportunities.
Secret to successful countries
According to the report, the best countries for venture capital investors, based on global venture capital performance, are listed below.
This ranking evaluates the performance of venture capital and the conditions they offer investors, highlighting the intensifying global competition.
Luxembourg: Earlybird Digital East Fund, ranked first in 2023, made Luxembourg the top destination for investors, emphasizing the maturity of Europe’s startup ecosystem and the importance of innovation-driven investments.
Australia: Blackbird, ranked second, showcases Australia as a rising player in global venture capital, with a focus on high-tech investments and an innovative startup ecosystem.
Hong Kong: MindWorks Capital, ranked third, reflects the strong investment potential in Asia. Hong Kong has capitalized on its position as a regional financial hub, offering a favorable environment for investors.
United Kingdom: Firms like Medicxi Ventures and Northzone highlight the U.K.’s significant role in Europe’s venture capital scene, particularly with its expertise in technology and health care sectors providing an advantage for investors.
China: Chinese firms like BA Capital and Co-Win Ventures are drawing attention with investments in consumer products and technology. China’s vast domestic market and tech-focused investments offer key opportunities for investors.
Denmark: The strong performance of Heartcore Capital underscores Denmark’s support for innovation and entrepreneurship.
AI startups in Türkiye multiply by 15 in 7 years
The Turkish Artificial Intelligence Initiative (TRAI) has released its updated AI startup map, revealing a significant surge in the number of AI-driven startups in Türkiye. Over the past seven years, the number of AI startups in the country has grown fifteenfold.
TRAI, which aims to increase AI awareness and foster its ecosystem in Turkey, published its updated map showing that by the third quarter of 2024, 12 new AI startups were added, bringing the total to 362. Back in 2017, there were just 24 startups.
That number grew by 64 in 2018, 75 in 2019, and 145 in 2020. By 2021, the number of startups reached 206, then 275 in 2022, and 325 by 2023, reflecting steady growth.
As of October 2024, the most concentrated categories in the AI ecosystem include computer vision, predictive analytics, and machine learning, with the fastest growth recorded in generative AI.
Generative AI takes lead
Among the 12 categories featured on the startup map – including computer vision, generative AI, RPA, predictive analytics, and IoT – generative AI witnessed the fastest growth.
Introduced for the first time in 2023, the generative AI category included 10 startups on the September 2023 map, but by October 2024, that number had jumped to 29.
“As the Turkish Artificial Intelligence Initiative, we continue our efforts to strengthen our ecosystem and increase AI awareness. Our updated TRAI Startup Map highlights the rapid growth of AI startups, showcasing the potential of Türkiye in this field,” said TRAI Director Can Sinemli.
Top categories
The TRAI Startup Map, which highlights the rapid expansion of the AI sector in Türkiye, also tracks emerging trends and innovations in various tech verticals.
According to the map, the top three categories in AI startups remain unchanged from the previous report: computer vision (85 startups), predictive analytics (66 startups) and machine learning (55 startups).
Türk Telekom joins global telecoms alliance
For many years, Türk Telekom has played a leading role in supporting Türkiye’s entrepreneurial ecosystem, helping innovative startups emerge and thrive. Now, the company continues to act as a bridge for startups focused on next-generation technologies, connecting them to the global stage.
Türk Telekom’s venture capital arm, TT Ventures has signed a cooperation agreement to join a global network that includes nine major telecom operators.
This network, called “Alaian,” operates in over 70 countries and serves more than 1.5 billion customers. By joining Alaian, Türk Telekom not only strengthens its position within the global entrepreneurship ecosystem but also collaborates with international players to scan for startups, develop innovative solutions, and invest in projects that will benefit the industry.
“Our efforts continue to contribute to Türkiye’s vision of becoming a technology-producing and exporting country. We are proud to be the first Turkish company to join Alaian, where global operators collaborate on industry-defining innovations and support startups developing innovative solutions, said Muhammed Özhan, general manager of TT Ventures.
“This partnership will provide a critical network for opening our entrepreneurial ecosystem to global markets and foster collaborations that drive access to new technologies. It will also solidify our pioneering role in developing and applying cutting-edge technologies on an international scale.”
Collaboration among telecom giants
As a leader in Türkiye’s digital transformation, Türk Telekom supports the global expansion of innovative ideas through its contributions to the entrepreneurship ecosystem.
For more than a decade, the company’s startup acceleration program, Pilot, has been at the forefront of nurturing innovative startups. Additionally, its TT Ventures Venture Capital Investment Fund invests in startups focused on future technologies.
Through its office in Silicon Valley, Türk Telekom Ventures acts as a bridge for startups to reach global markets.
The latest milestone in Türk Telekom’s international efforts is its inclusion in the Alaian network, which brings together nine telecom operators from more than 70 countries, such as Cellnex, KPN, MTN, NOS, Omantel, Orange, STC, TIM, and Telefonica.
With Türk Telekom, the network now has 10 members. Alaian aims to foster industry transformation through open innovation, as these telecom companies evaluate new technologies and startups, driving change and growth in the sector globally.
Sabancı provides nearly $6.5M support to entrepreneurs
One of Türkiye’s biggest conglomerates, Sabancı Group has completed the third term of its entrepreneurship accelerator program, Sabancı ARF Almost Ready to Fly, which it uses to support the entrepreneurial ecosystem and open innovation.
The program focuses on business areas such as “Energy and Climate Technologies,” “Advanced Material Technologies,” “Digital Technologies,” and “Health Technologies.” At the end of the third term, the startups Inversense, Biomix, Beespencer, MyGenomeScreen, and ICARBON have secured a total of TL 82 million in pre-seed investments.
The successful startups were announced on Demo Day, held this week, following the Investment Jury’s evaluation.
19 startups get investment
These startups will be able to commercialize their products and grow their companies thanks to the seed investment they received. They will also benefit from Sabancı’s extensive knowledge and customer network, becoming an essential part of the company’s new economy-focused growth strategy.
Launched in 2022, Sabancı ARF Almost Ready to Fly has accepted 43 startups into the program, with 19 of them receiving pre-seed investment. Alongside these investments, all participating startups received $30,000 in cash support, bringing the total value of the program’s in-kind and cash support across the three rounds to TL 221 million.
The program is open to entrepreneurs from across Türkiye and Sabancı Group employees. Applications are submitted through the Sabancı ARF Almost Ready to Fly website, and successful applicants gain access to one-on-one mentorship and networking opportunities with Sabancı’s Group companies.
Over 20 weeks, participants work in a specially designed space at Sabancı Center in Istanbul, where they develop prototypes, secure their first customer connections, or increase their invoice count. At the end of the program, participants present their projects to the Investment Jury, and those who receive positive evaluations earn the right to Sabancı ARF Almost Ready to Fly pre-seed investment.
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