Presidential Investment Office President Daglioglu stated that Istanbul stands out as one of the important cities in the world in terms of gaming startups, and said that the USA and the UK are in the first two places among the countries that invest the most.
Head of the Presidential Investment Office, Burak Daglioglu, stated that Istanbul stands out as one of the important cities in the world in terms of gaming initiatives, and stated that the USA and the UK are in the first two places among the countries that invest the most in Turkiye.
Presidential Investment Office President Burak Daglioglu said that Turkiye has started to have a say in the international gaming industry.
Daglioglu pointed out that two approaches of international investors stand out in the sector: strategic and financial. He explained that game companies, which are described as “strategic investors”, prefer to grow by purchasing their competitors in order to develop their own ranges and appeal to new customer groups, while “financial investors” are “venture capital” funds, also called “venture capital funds”. Daglioglu stated that venture capital funds invest in successful ventures with growth potential for a short time for profit.
Reminding that the US game company Zynga purchased Peak Games, Turkiye’s first “unicorn” (technology startup with a valuation of more than $1 billion), for $1.8 billion, Daglioglu emphasized that this attracted attention as a strategic investment.
Istanbul ranks second with an investment of $366 million
Daglioglu stated that financial investors have invested in another unicorn game studio, Dream Games, and said:
“These funds, called Venture Capital, became partners by purchasing the shares of Dream Games. After the company grows, it is aimed to make a profit by selling its shares at a higher price. Istanbul stands out as one of the important cities in terms of gaming initiatives. Istanbul ranked second after London among the cities with the most investments in gaming startups in Europe in 2022. In 2022, London ranked first with an investment of $705 million in 60 transactions, while Istanbul ranked second with an investment of $366 million in 21 transactions. Paris, which ranks third, received $154 million in investments in 16 transactions.”
Referring to the countries that invest in Turkiye in the international gaming industry, Daglioglu said, “From both a strategic and financial investors’ perspective, the USA and the UK are in the first two places among the countries that invest the most in our country.
These two countries are followed by Germany and France in Europe. “In general terms, Scandinavian countries in Europe, South Korea, Singapore and Japan in Asia are among the other countries that have the potential to invest in this field.”
“Success stories contribute to the development of the sector”
Emphasizing that current success stories contribute to the development of the sector, as in many sectors, Daglioglu stated that the sale of Peak Games to Zynga is important for the development of the sector. Daglioglu stated that, according to “Startups.Watch” data, 28 game companies and a total of 65 initiatives have been launched by 80 employees who left Peak Games to date. “Dream Games, one of the newly established game startups, became a ‘unicorn’ by reaching a valuation of $1 billion with the investment it received in 2021. ‘Royal Match’, developed by Dream Games, is the game with the highest income in the world with $82.6 million. This game ranked first among the most downloaded games in the world with a revenue of $76.1 million, leaving behind Candy Crush Saga, which has maintained this position for 10 years.”
Daglioglu noted that the Ministry of Industry and Technology carries out the “Technopark Supports” program and the Ministry of Commerce carries out the “Internationalization of the Turkish IT Sector and Stars of Informatics” programs for startups that develop games and applications.
Source: Trthaber / Prepared by Irem Yildiz