BV Insights 2023 Retro
At the end of 2020, we established the BV Growth (BVG) Fund after receiving our first commitments from investors. As Boğaziçi Ventures, we have invested in approximately 30 early-stage, Turkey-based, innovation-driven technology companies during this period.
At the end of 2020, we established the BV Growth (BVG) Fund after receiving our first commitments from investors. As Boğaziçi Ventures, we have invested in approximately 30 early-stage, Turkey-based, innovation-driven technology companies during this period.
Since our founding, we have grown and evolved together with our portfolio companies. In July 2022, we launched our LinkedIn Newsletter, BV Insights, to share the knowledge and experience of our team and portfolio founders.
As we reach out to you, our valued readers, for the last time this year, we wanted to recap all the articles we published in 2023. In this week’s piece, we grouped the content we shared throughout 2023 under headings such as Technology, Investment, Entrepreneurship, and Games, and presented short excerpts.
For 30 weeks in 2023, we landed in your inboxes every Saturday, sharing a knowledge-filled journey with you. Every moment of our readers is valuable, and every Saturday became a new opportunity to discover. That’s why we’ll continue to be with you in 2024 with content full of insights.
We’re excited to continue the 2024 journey together! Wishing everyone a happy new year.
TECHNOLOGY
In our technology-focused articles, we examined the latest developments and innovations in the sector. These pieces addressed current trends and forward-looking strategies, offering inspiring perspectives to our readers. Each article aims to broaden horizons by delving deeply into technology’s impact on the business world.
Creative and Disruptive Innovation: 2022 Data and Future Expectations
We see the use cases of AI expanding rapidly. It’s important to note that not only those developing the technology, but also companies using it, have major growth potential. Call centers will be replaced by companies offering advanced AI solutions. Marketing agencies will operate with much smaller, highly skilled teams. In healthcare, the global shortage of qualified professionals will be addressed with technology. AI will ease decision-making processes and make the most accurate diagnoses more accessible everywhere. Vertical farming will accelerate, and lab-grown meats will appear more frequently on our tables. There is strong conviction that changes in education will speed up in 2023; the education sector—largely unchanged since the industrial revolution—will not resist AI developments, and personalized learning methods will spread.
The AI Revolution in Stock Trading
As technology evolves, the internet’s capabilities keep expanding; concepts like AI, virtual reality, IoT, and machine learning are transforming our lives day by day. As time is reshaped, new sectors emerge and existing workflows and daily life move into the digital realm. Amid this rapid change, financial technologies (fintech) stand out. The fintech ecosystem includes open banking, payments, InsurTech, WealthTech, TradingTech, and RegTech. Investment technologies such as Robo-Advising and Stock Trading also play a key role.
SUPERCONDUCTORS: Forecasts on Their Integration into Daily Life
Superconductors—studied for years for energy generation, transmission, and utilization—made a major leap in July through experiments by a joint team of South Korean and U.S. researchers. The results surprised both researchers and the scientific community. After publication, academics and engineers split into two camps. Some argued the “too-good-to-be-true” results contained an error; others called the findings “a major breakthrough for science and technology.”
As Boğaziçi Ventures, we have closely followed and supported innovative technologies and related venture projects from day one. In line with our “disruptive innovation” strategy, we aim to back Turkish entrepreneurs’ projects to elevate technology to improve people’s quality of life. We are already excited about superconductor-based technology projects we expect to encounter more often and are closely tracking developments.
Working Capital Optimization in Technology Companies
In general, optimal working capital management ensures companies can access necessary cash without disrupting operations and utilize assets most efficiently. For tech companies, this means protecting cash against inflation and other risks (FX, taxes, competition, revenue risks) while meeting monthly overhead and expenses without cash strain.
When directing working capital toward investment products, tech companies must craft a strategy suited to their short- and mid-term dynamics: the sector they serve, target market, sales growth expectations, and competitive conditions. Expert guidance is therefore essential.
“Rebalancing”—i.e., timely re-allocation of assets—is another expertise-heavy component of working capital management. A bespoke model for each business is the most effective approach. As Boğaziçi Ventures Group, you can contact us at [email protected] to speak with our fund managers about our tailor-made portfolio models and analysis reports prepared for companies.
EdTech and Game-Based Learning
The role of play in education is increasingly important. The game-based learning market size was measured at $10.9B in 2022 and is expected to reach $52.8B by 2030 with a 19.51% CAGR. According to Statista, total revenue in the education apps segment was projected to exceed $15B in 2023. The number of mobile app downloads in education was estimated at ~1.5B in 2022.
One of our core investment areas is EdTech. Riders, one of our investments, is scaling globally. Riders is an education platform where you can experience 21st-century technologies—robotics, AI, and machine learning—through real-world simulations and content based on STEM principles.
Retail Media Network
Retail advertising is a holistic marketing strategy using various media channels to promote products or services to customers. Retailers use printed materials, TV, and online ads to reach target audiences. In the U.S., the retail media sector exceeded $30B in 2021. In the UK, Retail Media Networks (RMNs) grew more than 10% annually. According to Google Trends, searches for “retail media advertising” have recently risen by ~59%. The market offers more alternatives for brands while becoming more competitive for retailers.
INVESTMENT
In our investment-focused articles, we examined various strategies, the importance of technology-based investing, and new trends in capital markets. These articles summarize different investment opportunities and sector developments, providing valuable insights to investors. For more information, you can always reach us at [email protected].
Why Should We Invest in Technology?
Amid the global economic crisis, investor appetite has changed in two key ways. First, the profitability of tech companies—or their ability to achieve profitability within a set timeframe—has become a crucial criterion. We see many large tech companies taking steps to reduce costs. In parallel with AI’s expanding influence, sectors like AI, automation, cybersecurity, fintech, and robotics are attracting major investment.
Second, products’ real utility and alignment with ESG criteria have become important evaluation criteria. Investors now show greater interest in ventures delivering effective solutions in these areas. The rise of Web3 has also drawn attention to ventures in that space.
Technology ventures are shaping our future together with investors. As Boğaziçi Ventures, we continue to invest in technology and disruptive innovation-focused products and services. We remain committed to investing in Turkey’s tech ventures and launching funds that invest in technology. We invite everyone interested to join us in making disruptive innovation-focused investments.
What Is a Pre-IPO Fund?
As financial markets evolve rapidly, investment strategies are constantly changing. Beyond traditional instruments, investors have started showing interest in Single-Asset Pre-IPO funds. As the name suggests, these VC funds invest in a single company and the ecosystem that adds value to that company.
While not yet common in Turkey, many successful Pre-IPO funds worldwide offer investors the chance to invest in companies approaching an IPO. This strategy may offer high return potential, but investors should research carefully and evaluate with a long-term perspective. Global examples showcase the strategy’s potential.
The Joygame Pre-IPO GSYF fund—which offers the opportunity to invest in one of Turkey’s first gaming companies, Joygame—has grown 18× over the past two years. In addition, LT Pre-IPO GSYF provides access to Liquidity Trading, a fintech company differentiating itself in capital markets with AI and high-tech HFT (High Frequency Trading) solutions.
For details, contact us at [email protected].
Past Performance and the Future of Investment Funds
A VC fund’s success is directly linked to the quality, experience, and commitment of its managing team. The stage of portfolio companies and market conditions are also major performance drivers.
Direct-investing VC funds, with the right size and capable management, can seize market opportunities and deliver high returns to investors. In public equities, the number of thematic and focused funds is expected to increase. However, the quality of their management teams, contents, and strategies are key points investors must assess carefully.
The Turkish Tech Investor and Synergy
The first step in tech investing is setting the right strategy. Tech investors often recommend keeping 80% of your total investment budget in your current business and instruments with guaranteed returns, and allocating the remaining 20% to venture capital. This way, potential losses are tolerable, and gains are enjoyable.
Today, investing in tech companies is not only meaningful—it’s inevitable. We aimed to offer investors a simple and clear strategy. To answer what a truly investor-friendly fund should look like, we launched the BV Synergyfund—designed to suit investor needs without burdening them.
To learn more about our Synergy Fund, contact [email protected].
BV Synergy: Diversify Your Tech Investments with a Single Fund!
Offered by Boğaziçi Ventures (BV) Portfolio Management A.Ş., Synergy VCIF invites investors who want to become technology investors into a strong partnership. BV Synergy invests in technology with a multi-focus model and a co-investment strategy alongside strong investors in the sector.
The fund enables investors to invest in multiple sectors—climate tech, game tech, edtech, health tech, blockchain, and more—through a single vehicle. Through co-investment with successful VC funds, investment banks, and strategic investors, BV Synergy shares risk and amplifies financial strength.
Thus, investors can both seize opportunities and minimize risks. For details and opportunities, contact [email protected].
Investment Opportunities in Volatile Environments and Turkey’s Investment Ecosystem
To be prepared for challenging times, in addition to “protective” investments, it’s key to allocate to assets that offer both protection and growth to balance portfolios. Investing in future scenarios to target maximum returns within an optimal horizon is critical.
As one of Turkey’s leading alternative asset managers, Boğaziçi Ventures goes beyond a traditional investment mindset to focus on value-creating projects. In line with our mission to invest in the future, we provide our investors with expertise through technology-focused specialty funds.
For more information and to explore opportunities, you can always contact us: www.bvportfoy.com.
HFT Technology in Capital Markets and a Pre-IPO Opportunity: Liquidity Trading
Continuing our Pre-IPO educational series, this week we focus on fintech. Pre-IPO funds—investing in the future’s value today—are not yet widespread in Turkey, but many global examples exist.
Pre-IPO funds give investors access to high-growth companies before they go public. Particularly in fast-moving sectors like fintech, they offer significant opportunities. With a view to potential future returns, investors can make strategic allocations via such funds.
For more info on these investment opportunities, feel free to contact us.
Turkey’s Fintech Ecosystem
We’d like to share insights from Hakan Erdoğan, co-founder & CEO of BV portfolio company Craftgate, featured in the 2022 “State of Turkey’s Fintech Ecosystem” report.
Erdoğan notes that, with evolving regulations, investments, and new-gen technologies, the playing field in fintech is expanding. He foresees rising demand for solutions that reduce time and revenue loss in payment process management. He also emphasizes the growing importance of technologies that enhance customer experience.
These comments offer an important perspective for understanding developments and future trends in fintech. By investing in innovative solutions and technologies, you can best leverage sector opportunities.
ENTREPRENEURSHIP
In our entrepreneurship content, we shared knowledge and experiences across a wide range—from valuation methods to technology trends, hackathons, and accelerators. To realize your dreams, apply now to grow your tech venture with Boğaziçi Ventures and join our global network!
BV Growth Fund Continues Investing in Early-Stage Tech Companies
Launched at the end of 2020 after gathering initial commitments, BV Growth Fund (Inveo Portfolio Boğaziçi Ventures VCIF, “BVG”) expanded its portfolio by investing in 30 Turkey-based early-stage tech companies in just 2.5 years.
During this period, with the contributions of our experienced team and broad Venture Partner network, we evaluated 6,162 venture companies, held first meetings with 955, and conducted 216 deep-dive sessions on past product performance, future plans, and financial projections.
Operating with the goal of investing in successful ventures with disruptive business models and technologies, BV Growth will continue collecting commitments until the end of 2024.
Note: Only “qualified investors,” as defined by regulation, can invest in the fund.
After Mobidictum: Gaming and Entrepreneurship in Turkey
The Mobidictum event stood out this year as a key organization where Boğaziçi Ventures also had a special presence. Studios, publishers, tech companies, and investors came together—an opportunity to assess current trends and network.
Over two days, we met more than 50 studios at different stages and domains and listened to their perspectives. Despite unique stories and timelines, several common issues emerged: post-pandemic transformation, funding challenges due to global recession, platform policies, and retaining skilled talent.
This event offered an excellent opportunity to better understand the current state and future direction of the sector and provided valuable insights for further reflection and problem-solving.
Valuation Methods in the Entrepreneurship Ecosystem
One of the most critical thresholds in a venture’s challenging journey is determining its true value. While income-based, asset-based, and market-based valuation methods are used, approaches tailored to the venture’s characteristics and its sector matter. This stage should be carefully addressed before the investment process is completed.
At Boğaziçi Ventures, we strive to stand by the long-term success of the companies we invest in. In valuation, we offer bespoke methods for each portfolio company. The methods presented here represent only part of our techniques. We perform detailed analyses using unique metrics for each company and develop fair valuation methods to help ventures bring innovative ideas to life.
Hackathons and Accelerator Programs
Rapid technological change presents exciting opportunities for entrepreneurs. It’s a particularly fortunate time to bring new ideas and projects to life. For newcomers, hackathons and accelerators offer important opportunities. In this article, we compiled the role and advantages of such programs in the ecosystem with global and local examples.
The fast pace of change brings both opportunities and challenges. For those who want to make the most of it, hackathons and accelerators provide major benefits. Boğaziçi Ventures recognizes their importance for young founders and offers support with our knowledge and experience.
GAMES
In articles focused on the gaming world, we dive into the industry’s dynamics through the perspectives of leading companies and entrepreneurs. We explore the fast-changing nature of gaming, new trends, evolving technologies, and successful strategies. Drawing on experiences from our portfolio companies and insights from their leaders, we aim to reveal the inside of the gaming world and deliver inspiring, informative content.
The Rising Star of the Third Millennium: The Gaming Industry
According to Statista, the mobile games sector—now reaching more than 2.2B users—pushed the global digital games market beyond the combined size of the film and music industries by 2019. In 2022, the video game industry surpassed $184B worldwide, topping the entertainment sector. While digital transformation was expected to positively affect many industries over the last 15 years, few anticipated the speed and scale of growth seen in games.
6 Critical Tips for Game Developers to Attract Investors
In-game advertising reached a market size of $7B in 2022 and is growing rapidly, increasing its appeal to investors and developers. Research projects this market to hit $67B by 2030. As next-gen tech—VR, blockchain, AI—integrates into the sector, competition intensifies. VC firms and angel investors, including in Turkey, continue backing this growing market in pursuit of new unicorns.
Understanding the Hyper-Casual Segment
Key principles for building a successful hyper-casual game:
Simple Concept: A theme simple enough to summarize in a few words; avoid complex rules.
Easy to Play: Instant onboarding with intuitive controls; avoid long explanations and complicated inputs.
High Replay Value: Keep players returning through engaging loops; the sense of achievement and progression fuels retention.
Smart Ad Strategy: Ads drive a large share of revenue—place them strategically without hurting the experience.
Continuous Improvement: Refine mechanics using user feedback and data to keep the game fresh and engaging.
To succeed, create a simple, fun, and addictive experience that players want to revisit.
Is Hybrid-Casual the Next Big Mobile Trend?
“Hybrid-casual” emerged to fill the gap between hyper-casual and casual categories. According to AppLovin, hybrid-casual fuses hyper-casual core mechanics with the progression systems seen in casual and mid-core titles.
While studios that struggle to adapt may fail, those moving fast and acting strategically can scale rapidly. By blending the simplicity and speed of hyper-casual with the depth and progression of casual/mid-core, hybrid-casual can offer a more sustainable, stable experience—ideal for studios seeking a lasting, successful mobile category.
FROM THE ENTREPRENEUR’S PERSPECTIVE
In this series, we aimed to share the expertise of our portfolio companies with you. Each stands out with pioneering and innovative approaches in its field. Their leaders and experts shared developments, trends, and strategies—offering inspiring perspectives.
From the Entrepreneur’s View: Consumption Habits Across Game Genres & Notes for Founders
The greatest value proposition of video games is often “immersion.” A game can carry you into a different world or provide instant gratification that keeps you coming back. By tapping neurochemical triggers, games constantly engage your decision-making mechanisms, capturing attention. Ultimately, games demand people’s most valuable asset: their free time.
We can broadly group games into PC/console, mobile, and Web3. However, this consumption-based breakdown doesn’t necessarily reflect what defines quality. What makes a game good or bad? Which elements draw users’ most valuable investments—time and money—into your game? These questions are critical to understanding success and appeal.
From the Entrepreneur’s View: How to Create a Talent Abundance in Games Going Forward
As digitization and technology evolve at near-daily speeds, our business world and skills evolve too. In fast-changing areas like gaming and Web3 gaming, coping with these shifts is increasingly complex. Constantly updated trends, new languages, tools, and more all contribute. Finding, training, and hiring highly specialized talent becomes one of the biggest bottlenecks. Traditional approaches to talent access and work models fail to meet the innovation demands of the new era.
To respond quickly to shifting dynamics and rising opportunities, firms now integrate multiple work models—not just full-time employees—into their systems. What are the core components of this new workforce?
From the Entrepreneur’s View: Robotics Coding’s Contribution to Education—Notes for Founders & Investors
Robotics coding is the process of designing robots to perform specific tasks using algorithms and programming languages. Robots can sense their environment via sensors, move, and—thanks to AI—make decisions. It’s a rapidly developing field; when integrated into curricula, it helps prepare children early for future technologies.
Research shows coding skills raise students’ digital literacy, stimulate creativity, and improve problem solving. Therefore, products that align with new education paradigms and offer programs that teach computational thinking can have major impact.
From the Entrepreneur’s View: Psychological Support in the Digital Age—The Rise and Future of Online Therapy
The human mind is a vast universe full of undiscovered secrets. Anyone seeking to better understand their problems, dreams, and goals can embark on an inner journey of discovery. Online therapy plays an important role by guiding this personal exploration and transformation.
According to a report by Intellectual Market Insights Research, the global online therapy market was $2.86B in 2021. The report projects it to reach $23.52B by 2028 with a 32.12% CAGR (2021–2028). These figures show the sector’s strong potential and its rapid post-pandemic growth.
SPECIAL DAYS
We celebrated the 100th anniversary of our Republic with Atatürk’s inspiring words.
Celebrating the 100th Anniversary of Our Republic by Remembering Atatürk’s Inspiring Words
On the centenary of the profound transformation and rebirth that began with the proclamation of the Republic on October 29, 1923, we continue to carry the torch lit by our great leader for the productive youth who are our country’s future. As the Boğaziçi Ventures family, we always draw inspiration from Atatürk’s philosophy of entrepreneurship and leadership.
Boğaziçi Ventures will continue to fulfill its responsibility to carry Atatürk’s legacy in business and pass it to future generations. Embracing these values wholeheartedly, we will keep moving toward a brighter future, contributing to our country, and celebrating many more anniversaries of our Republic with the inspiration from Atatürk’s teachings.
As Boğaziçi Ventures, we make significant contributions to Turkey’s entrepreneurship ecosystem by supporting technology-focused investments and innovation. Through BV Insights, we offer rich content across technology, investment, entrepreneurship, and gaming, delivering valuable information to our readers.
Our articles on future outlooks, sector developments, and investment opportunities broaden perspectives and serve as guides. With BV Portfolio’s funds and technology-based projects, we aim to support future innovation and the growth of tech-based ventures.
On this knowledge-filled journey, every moment offers a new discovery for our readers. BV Insights will continue to bring readers together with inspiring content in 2024.
