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Türkiye's startup ecosystem got off to a strong start in 2026, with total deal volume reaching $559.2 million across 42 transactions in the first quarter as gaming emerged as the dominant force behind investment activity, according to a report released by KPMG Türkiye and venture capital firm 212.
The total compares with $70.2 million in the same period last year and was largely boosted by four gaming transactions worth a combined $534.5 million.
Acquisitions accounted for the largest share of activity by value in the first quarter, generating $509.2 million and representing 91% of total deal volume.
Seed-stage funding remained the most active category with 35 transactions, while only one early-stage investment was recorded. No late-stage deals were announced during the period.
Although foreign investors participated in just two transactions, they generated $504 million in deal volume, accounting for roughly 90% of the quarter's total.
Local investors were involved in 40 of the 42 deals completed during the period, contributing a combined $55 million.
The quarter's standout transaction came in February, when U.S.-based Scopely acquired a 50% stake in Turkish game developer Loom Games for $500.1 million.
The deal valued Loom Games at more than $1 billion, making it Türkiye's seventh unicorn.
Another major transaction saw mobile gaming company TaleMonster Games raise $30 million in an early-stage funding round backed by Arcadia Gaming Partners, Andreessen Horowitz, General Catalyst and Point72 Ventures.
Other notable deals included Dataroid's $6.6 million seed round, the $5 million acquisition of fintech firm Oduyo by QNB eSolutions, and a $4 million seed investment in mobile game developer Vento Games.
By transaction count, healthtech emerged as the most active sector with five deals. Artificial intelligence, gaming and robotics followed with four transactions each, while biotech and agritech startups recorded three deals apiece.
Among the quarter's AI-related investments, software company Vimesoft secured $1.5 million from a group of investors including MADA Girisim Sermayesi, Re-Pie Portfoy, Ziraat Portfoy and Rubellius Capital.
The strong first quarter reflected broader trends in global venture capital markets, where investment activity reached $330.9 billion across 8,464 deals, driven largely by a wave of major artificial intelligence funding rounds.
Ozge Ilhan Acar, a partner at KPMG Türkiye's M&A Advisory Services, said investors are becoming more selective and increasingly favor startups with established technology and clear growth prospects.
"While startups with strong technological infrastructure and a certain level of maturity can access funding more easily, international investor interest in early-stage ventures can remain more limited," Acar said.
She noted that AI is likely to remain a key focus for investors in the coming quarters.
The rapid expansion of AI technologies is also expected to boost demand for alternative energy and cleantech solutions as energy consumption rises.
At the same time, defense technology and cybersecurity are expected to attract greater attention as geopolitical tensions continue to influence investment decisions worldwide.
Ali Karabey, managing director of 212, said the increase in deal volume points to a more mature startup ecosystem, with investors placing greater emphasis on companies that can pair technological innovation with global growth potential.
The report highlighted AI applications, advanced robotics, energy technologies and cybersecurity as sectors expected to draw stronger investor interest through the rest of 2026.
Türkiye's gaming industry has become one of the country's standout startup sectors, with the domestic market surpassing the $1 billion mark in 2025, according to the 2025 Türkiye Gaming Industry Report by Gaming in Türkiye MENA EU.
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