ŞEREF KILIÇLI Türkiye’s entrepreneurial ecosystem moved onto another climate in 2021. Last year, startups drew US$ 1.6 billion worth of investment in 262 and broke yet another record. Exceeding the band of US$ 1 billion in investments in startups carried Türkiye to Europe’s Super League from Europe’s 1st League in this area. In other words, Türkiye’s entrepreneurial ecosystem now remains at the top rank that also hosts Germany, the United Kingdom and France. Initiatives in Türkiye achieved US$ 757 million worth of investment in 2010-2020. The success achieved in 2021 raised the bar for future expectations. The new target is becoming permanent in the European Super League regarding startup investments and making more remarkable achievements. GLOBALIZED ENTERPRISES Founder of Startupswatch Serkan Ünsal evaluated Türkiye’s new achievements in the entrepreneurial ecosystem and said: “The US$ 1.6 billion investment in startups in 2021 is the evidence of the level reached by the ecosystem. 2021 should be regarded as the year for reaping the fruits of globalization. 2021’s biggest difference from the other years is the globalized enterprises’ attraction of higher investments. The game sector’s dynamism gained massive momentum after Peak and Rollic’s exits. Türkiye and Istanbul may become Europe’s greatest game centres.” LEADING ISTANBUL Istanbul’s leadership in the entrepreneurial ecosystem draws attention. The enterprises in Istanbul received over 90% of the investments in 2021. Serkan Ünsal noted that Istanbul would continue to be the leader in startup investments and added, “Despite the growing telecommuting trend due to the pandemic, Istanbul is well ahead of Türkiye’s other cities, it is even ahead of European cities and that will not change. Istanbul will remain at the top ranks as globalized enterprises wishing to create solutions to world’s problems continue to emerge.” FIVE UNICORNS AT THIS STAGE Presently, there are five unicorns, five investments worth US$ 1 billion in Türkiye. The list of these enterprises: Peak, Getir, Trendyol, Hepsiburada, Dream Games. Moreover, ten more enterprises with an increasing value are stated to advance on the path of becoming unicorns. The enterprises expected to become unicorns in the upcoming period are as follows: Modanisa, Insider, Good Job Games, Fugo Games, Alictus, Vivense, Meditopia, Martı, Paycore, Ace Games. Experts’ projections suggest that Türkiye’s unicorns would reach 15 in the short run as these enterprises achieve the unicorn value. ICOC’S SUPPORTS VIA BTM Founded by the Istanbul Chamber of Commerce to support new-generation entrepreneurship, the Commercialization Center of Istanbul (BTM) turned into a critical centre for Türkiye’s startup ecosystem. The total valuation amount of BTM enterprises reached TRY 996 million in the 4.5 years. The year 2021 was also a year of new record-breaking achievements for BTM. When 21 enterprises received TRY 204 million and 60 thousand investment in 2020, this figure reached TRY 625 million and 260 thousand in 2021. BTM’s performance by the year 2021 was 180 times higher than its success in 2017. BTM’s General Manager, İbrahim Elbaşı noted that 2021 went into history as an unforgettable year for Türkiye’s entrepreneurial ecosystem and added, “Because the investments in the ecosystem and Turkish enterprises achievements made their mark on 2021. The year 2021 was also a record-breaking year for BTM. I believe that 2022 will be an even better one.” TEKNOPARK ISTANBUL CUBE INCUBATION Founded by the Presidency of Defence Industries and Istanbul Chamber of Commerce, technology development zone Teknopark Istanbul also contributes to startups’ progress. As Teknopark Istanbul’s incubation centre, Cube Incubation hosts an ecosystem that gathers entrepreneurs, investors and other stakeholders with innovative and deep technology-based business ideas. Cube Incubation moved to a new centre with a 10 thousand square meter area and continues to serve the entrepreneurs with the prototype workshops, post-incubation, cyber security incubation centre, medical/bio-engineering incubation centre and various recreational areas.

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Türkiye concluded the year 2021 by breaking a record in exports. The country broke another record in defence and aerospace exports. In 2021, the exports exceeded US$ 3 billion for the first time. Compared to previous years, the delivery of more unmanned air vehicles played an influential role in reaching this level. Türkiye is raising the bar in this area by exporting Hürkuş qualified as the first Turkish aircraft with a European certificate. MANUFACTURER COMPANY TAI Manufacturer company of Hürkuş, Turkish Aerospace Industries, Inc. (TAI) is Türkiye’s centre of technology regarding the design, development, modernization, production, and integration of integrated aerospace industry systems ranging from fixed and rotatingwing air platforms to unmanned air vehicles and space systems. EUROPEAN CERTIFICATION Though initially planned as a trainer jet, various designs of Hürkuş for different utilization types were developed, and the aircraft received the Directorate General of Civil Aviation’s (DGCA) ‘TT32 Aircraft Type Certificate’ on 11 July 2016. The European Union Aviation Safety Agency (EASA) validated SHGM’s certificate for all European countries on the same day. In this way, Hürkuş became the first Turkish aircraft to receive a type certificate from a European Civil Aviation Authority. Malaysia, Niger, Azerbaijan and Pakistan remain on Hürkuş’ export radar in the first stage. INFRASTRUCTURAL INVESTMENTS Remaining among the global players of aviation, space and defence industry, TAI achieved a more ambitious position in production and procurement with the facilities it launched in the first week of this year. The official opening of the facilities, including the National Combat Aircraft (TF-X) Engineering Center and Composite Production Building to enhance Türkiye’s position in the aerospace industry, has been executed with President Recep Tayyip Erdoğan. A ceremony has been conducted for a series of facilities at TAI in addition to the Engineering Center regarding the TF-X carried out under the coordination of the Presidency of Defence Industries of the Presidency of the Republic of Türkiye. Two thousand and three hundred people will be employed at the TF-X Engineering Center. SPACE SYSTEMS Officially opened Composite Production Building and auxiliary facilities will be Türkiye’s most prominent and the world’s 4th largest composite facility under a single roof. The factory with 150 engineers and 850 technicians will have the capacity of meeting 2% of the global composite aircraft structure market. Seven hundred eighteen people will be employed at the Space Systems Engineering (SSE) Center. The 16 facilities will introduce employment opportunities to 15 thousand people at the Aerospace and Aviation Specialized Organized Industrial Zone. HÜRJET TO LAUNCH SERIAL PRODUCTION The first phase serial production call was made for HÜRJET that is planned to conduct the maiden flight in 2023. T-38 jet trainers within Turkish Air Forces inventory is aimed to be replaced with HÜRJET. The aircraft is intended to share the closer air support and combat aircraft training roles of the F-16s with the light attack aircraft configuration with a payload capacity of 2 thousand 721kgs. HÜRJET is designed to perform at a service ceiling of 45 thousand feet with a maximum speed of Mach 1.4, and the aircraft will feature state-of-the-art technology and flight systems.

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Türkiye’s global mobility brand Togg is leaving behind another critical stage towards achieving its target of ‘journey towards innovation.’ Togg’s test production activities were commenced, and the brand is planning to launch the first serial production car from the production band by the end of 2022. Togg aims to become a global brand of which Türkiye owns all exclusive intellectual and property rights. TOGG carried out the preliminary demonstration of its vehicles on 27 December 2019 with the motto ‘journey towards innovation’, and the brand moves onto a new stage as of the end of 2022. Togg’s CEO Gürcan Karakaş talked about their 2022 goals at the facilities in Gemlik province of Bursa and stated that they have been reaching their targets step by step in line with the plans. Karakaş said, “There will be a total of 250 robots in our facility. We will launch the test production at the end of July 2022, and our first serial production vehicle will be off the production band at the end of 2022. Following the completion of the homologation tests, our first vehicle C-segment SUV will be launched to the market in the first quarter of 2023.” Declaring Togg as a ‘smart device’, Togg’s CEO Gürcan Karakaş stressed that as a technology company, they did not attend automotive fairs and reminded that they participated world’s largest Consumer Electronics Show CES 2022 on 5-8 January. RUNNING THE TESTS Telling that they started installing the equipment in the facility, Karakaş continued, “We launched the development of the smart device parts of the automobile and selected our suppliers. Presently, we are running the crash tests, endurance, and performance tests. We are gradually implementing all the engineering development processes professionally.” Karakaş underlined that they built Europe’s cleanest facilities in Gemlik. COLLABORATING WITH STARTUPS Gürcan Karakaş noted before launching the automobile’s sales, they may introduce a different product to the consumers with the startups they collaborate with, and they negotiated with 226 startups. Declaring that they shook hands with ten of these companies, Karakaş stressed that they also worked in detail with 25 startups. Karakaş stated that they focused on strategic areas such as mobility solutions, big data, cyber security, fintech, blockchain, gamification, smart grids, and mobility services. A COMPETITIVE PRICE Karakaş’ statements on Togg’s price are as follows: “Ever since we started our journey, we thought that when we entered the market in 2023, the C-segment SUV with the highest sales in our country would not be an electric vehicle. Therefore we planned alldetails knowing that we need to take a market share from the internal combustion vehicles. So, if you ask, ‘can you compete in the league of C-segment SUVs?’, our answer will be, ‘yes, we can.’” THE LOGO THAT GATHERS THE EAST AND THE WEST Togg decided about its logo after determining the brand’s name. Two arrows are uniting in the logo design to form a precious stone in the middle to symbolize the East and the West’s joining. At the same time, the logo emphasizes Togg as the technology company uniting the technology and the human beings in the intersection point of today and tomorrow on account of Togg’s mobility solutions making life easier. Logo’s registration process required by the European Union, USA, China, Russia, Azerbaijan, Turkic States, and Türkiye commenced. The excitement of serial production in Togg’s factory in Bursa-Gemlik is defined as ‘Europe’s cleanest facilities.’ MANUFACTURES İTS BATTERY CEO Karakaş pointed out that they will have manufactured their batteries by the end of 2022 and continued: “We established Siro in partnership with Farasis Energy. We launched the preparations with Togg Smart and Rapid Charging Solutions Inc. to support a rapid and extensive infrastructure.” Karakaş mentioned that Siro, founded by Togg and Farasis Energy to develop power storage solutions, would become a leader in producing battery cells, modules, and packages. Karakaş also noted that Siro would becomea business partner with Türkiye in the neighbouring countries in the automotive and non-automotive sectors.

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ADEM ORHUN Istanbul offers countless opportunities for business and sectoral cooperation in addition to tourism and travel. Numerous fairs, exhibitions, and business negotiations are carried out in the city every year to realise such potential. One of these events, the ‘Gate of Business Textile’, has been held once again after a year-long pandemic break. Istanbul Chamber of Commerce organised an event where the companies active in the textile and fabrics sector could transform their performances into new business opportunities with international partners. 350 BUYERS FROM 8 COUNTRIES Foreign buyer companies and Turkish companies gathered at the event held at the halls of a modern hotel. Hundreds of Turkish companies displayed their fabrics and other textile goods, initial negotiations were conducted, and first signatures on the orders were put. This event started to be organised in 2019 and was held twice that year. However, it was suspended in 2020 due to the Covid-19 pandemic. It has been executed this year due to the massive demand of the sector. Buyers and 350 buyers from 8 countries attended the event. In 2022 the event will have a broader scope and is expected to pave the way for business partnerships, orders and the fashion industry. FIRST IN THE SECTOR Regarding the event, the President of the Istanbul Chamber of Commerce Şekib Avdagiç , said, “Gate of Business Textile B2B Istanbul, is Türkiye’s greatest organisation in fabrics. It is the most aspiring event of the textile sub-industry.” Avdagiç underlined that as the meeting point of the East and the West, Istanbul had to turn into a centre where the global textile sector’s heartbeats and continued: “With its high-quality products as well as designs, the Turkish textile sectors deserves this position. We are ready to provide all the support to the initiatives in this regard. The Turkish fabrics, textile, and related sectors grew so much that we can now organise a global fair to match such size. We have exhibition halls with indoor areas of 100 thousand square meters, and I believe all halls will be full when we hold a fair.” TEXTILE SECTOR BREAKING THE EXPORT RECORD In 2021, Turkish companies exported textile and raw materials and achieved a record-breaking US$ 12.9 billion. Increasing its exports by 33.2 per cent, the Turkish textile sector took a 42.4 per cent share from USA’s woven fabrics market imports.

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The number of global direct investors across Türkiye is expected to reach 83 thousand this year. Forty-four thousand of these investors will be stationed in Istanbul. Within this context, this year’s direct investment projection of YASED has been declared as US$ 25 billion. Renewable energy sources, deep technology and the automotive industry are on top of the areas attracting global direct investors. BARIŞ CABACI The global economy’s rules are being reshaped as of 2022, and the supply chain adversely affected throughout the pandemic is integrating with the new chains to recover. Türkiye is one of the strongest links of the chain… Serkan Valandova, the Secretary-General of the International Investors Association (YASED) replied Istanbul Chamber of Commerce’s questions on international investors’ preferences in Türkiye in the new year. US$ 25 BILLION Stating that this year a share of 1.5 percent from the global direct investments (GDI) volume is aimed to be achieved, Valandova summarized projections for direct investments in Türkiye. Valandova said, “There is an investment capital volume of US$1.5 trillion in the world. Though the year 2022 is full of many uncertainties for our world, such as the pandemic and geopolitical risks, the global direct investments will maintain the 2021 levels. An investment amounting to US$ 25 billion­­ is expected to land in our country.” ONE HALF IS CAPITAL TRANSFER Valandova underlined that global direct investment inflow to Türkiye in 2021 was around US$ 10 billion. Valandova added that US$ 5.7 billion of this comprised of capital transfer while the rest was built of real estate and continued: “When we examine the origins of the capital transfer, we see that almost half of it originated from the United Kingdom, USA and Netherlands. These countries are followed by the UAE, Switzerland, Luxembourg and Germany with a total share of 30%.” ISTANBUL’S SPECIAL POSITION YASED’s Secretary-General Serkan Valandova stressed Istanbul’s unique characteristics that distinguished the city from other cities in Türkiye. Valandova pointed the robust manufacturing industry in the city as well as in the surrounding cities and continued: “In fact, Istanbul is a city where the service sector is more prevalent. It is the centre of information technologies, finance and insurance, creative industries, and entertainment. The city’s competitive power in the cinema industry, TV programming and broadcasting are also quite high. Therefore, Istanbul is heading towards becoming a city that specializes in a service sector with high added value and exports services.” Valandova noted that the number of companies with foreign capital in Türkiye amounted to 78 thousand by the end of 2021 and added that they expected this number to reach 83 thousand in Türkiye and 44 thousand in Istanbul in the new year. THE EU PLAYS A DETERMINING ROLE Underlining that the period contained remarkable opportunities regarding the goods and markets where Türkiye has competitive power, Valandova said: “Türkiye’s relations with the EU will play a determining role in the c­­ountry’s capacity to enhance its position in the supply chains as the EU member countries represent over 51% of the GDI stocks and Türkiye conducts more than 40% of its exports to these countries.” THE GREEN DEAL Valandova expressed that Türkiye is among the countries with the capacity to swiftly adopt the regulations regarding the European Green Deal and added, “If we perceive border carbon adjustment and compliance with other regulations that may create non-tariff limits as part of EU’s Green Deal that we need to assume as an opportunity instead of threats, we may further strengthen our position within the supply chains.” 87% OF HEADQUARTERS REMAIN IN ISTANBUL Serkan Valandova noted that 60% of the people employed in computer programming and consultancy sectors were registered in Istanbul. Valandova continued elaborating on Istanbul’s unique position: “Istanbul hosts to the headquarters of international investors in terms of our country and a wider region that covers the surrounding countries. 87% of YASED members’ headquarters in Türkiye are located in Istanbul. The general directorates of most of our members in Istanbul are at the same time the regional administrative centres of their investments in the surrounding countries. As YASED, we share our views with the governmental authorities on what needs to be achieved to position Istanbul similar to Dubai, Hong Kong, Singapore etc., as the regional centre of companies and a common service centre and presently, we are preparing a project to elevate our past activities in this area to the top level.” THE TOP THREE SECTORS 1. Renewable energy “Last year, the investments in renewable energy in Türkiye exceeded the level of investments in coal, oil and natural gas while the wind energy capacity increased considerably. In solar energy, there is a massive investment potential to be realized. The most critical point here is to build a list of projects ready to be financed. Green transformation and green energy will be among the most significant investment areas of 2022.” 2. Great potential in the automotive industry “Another area with an ever-increasing investment potential as part of the green agenda is the automotive sector. Türkiye’s automotive sector, including the sub-industry, has remarkable potential, particularly in the battery technologies and software technologies that support autonomous and connected cars. This sector’s interaction with the other sectors will reach the ultimate level within the scope of the long-term strategies that aim at smart cities. At this point, Türkiye will become the base of the automotive industry and the sub-industry base of the sector in the long run.” 3. The year of deep technology “The global investors’ interest in Türkiye’s startup economy will increase further in the new year. Though we observe that international investment funds and global technology investors are rather interested in the e-commerce sector for the time being, as of 2022, we expect an increase in the inflow of investments in other sectors, particularly in the information technology startups.”

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