Is Istanbul a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Istanbul has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Istanbul gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Istanbul

Funding is one of the most critical ingredients in building a successful startup – and Istanbul offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Istanbul's early-stage startup scene is dynamic, supported by various local and international investors. Notable VC firms active in the ecosystem include Revo Capital, 212, and Earlybird Digital East Fund, often focusing on tech-driven companies with global potential. Angel networks like Galata Business Angels and Istanbul Startup Angels also play a crucial role in providing initial capital and mentorship. Government support is available through programs like TÜBİTAK BiGG and KOSGEB grants, aimed at fostering innovation and providing financial assistance at idea and early stages. Despite this support, challenges persist, including a notable seed-stage funding gap compared to more mature ecosystems, with a significantly lower percentage of seed-funded startups reaching Series A in Turkey than in countries like the UK or Germany. While 2024 saw a record increase in total deal volume, largely driven by acquisitions and late-stage investments, early-stage deal volume experienced a decline in Q1 2024 compared to the previous quarter, reflecting a cautious approach among investors amid global uncertainties. Competition and attracting skilled talent who may seek opportunities abroad are also factors influencing the environment.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Istanbul has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Istanbul has a vibrant and growing startup ecosystem with significant entrepreneurial activity. The city is home to numerous coworking spaces, incubators, and accelerators that provide resources, mentorship, and networking opportunities. There are also many tech events and summits connecting founders with investors and industry experts. The ecosystem supports startups at various stages, with government initiatives and programs specifically targeting early-stage and idea-stage ventures, offering grants and tailored support alongside more standardized accelerator programs. Istanbul ranks highly for early-stage investments in Europe.

For many entrepreneurs, the energy and resources available in Istanbul can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Istanbul, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Istanbul is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Istanbul has a strong talent pool for startups, fueled by numerous universities like Boğaziçi University and Istanbul Technical University, which offer programs in technology and business. The city produces a large number of STEM graduates annually. Key industry skills available include software development (frontend, backend, mobile), UX/UI design, data analytics, cybersecurity, AI/ML, and digital marketing. This talent supports entrepreneurial growth by providing startups with a skilled workforce. The presence of experienced professionals and a collaborative culture further aids knowledge exchange and mentorship within the ecosystem. Government initiatives and a growing number of accelerators and incubators also contribute to nurturing this talent for startup success.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Istanbul can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Istanbul boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Istanbul offers a robust ecosystem for startups with numerous accelerators, incubators, and co-working spaces providing essential resources, mentorship, and networking opportunities. Organizations like Hackquarters and Incubation Istanbul offer programs supporting startups from ideation to scaling. Funding is available through various sources including venture capital firms, angel investor networks, and public programs. The Turkish government actively supports the startup milieu through various initiatives. TÜBİTAK provides significant financial support and grants for R&D and idea-stage startups through programs like BiGG. KOSGEB also offers grants at different stages. The Istanbul Development Agency (ISTKA) is a key player, implementing programs and supporting projects to strengthen the city's ecosystem and attract investment. Initiatives like the Turcorn 100 program aim to foster unicorns, and tax incentives and R&D support further encourage growth. These combined efforts create a dynamic environment for startups to thrive.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Istanbul. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Istanbul Be Considered the Best Place to Launch a Startup?

There’s no doubt that Istanbul provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Istanbul face significant competition in a bustling market, particularly in sectors like tech, fintech, and e-commerce. While the cost of living is relatively affordable compared to major global cities, rising inflation and currency fluctuations can impact expenses. Regulatory issues and bureaucracy can be challenging, with frequent changes in tax and business laws requiring constant adaptation and potentially local expertise. Navigating permits and legal compliance, including data protection and tax integration, adds complexity.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Istanbul or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Istanbul offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash