BV Portföy GSYF Options for R&D Company Obligations

As we approach the last quarter of the year, we would like to provide clarifying information on a few critical points to help avoid the "incentive obligation" confusion that technoparks and portfolio management companies have jointly experienced in previous years. In this article, you will also find a brief overview of BV Portföy’s venture capital investment fund (GSYF) options available for these obligations.

As we approach the last quarter of the year, we would like to provide clarifying information on a few critical points to help avoid the "incentive obligation" confusion that technoparks and portfolio management companies have jointly experienced in previous years. In this article, you will also find a brief overview of BV Portföy’s venture capital investment fund (GSYF) options available for these obligations.

The Most Recent Updates on “Obligations”

With Presidential Decree No. 7593, effective January 1, 2024, changes were introduced for those benefiting from R&D deductions and Technology Development Zone income exemptions. According to the new regulation:

• The deductible amount via annual declarations has been increased to TRY 2,000,000,
• The proportion required to be transferred into a temporary liability account has risen to 3%,
• The annual upper limit for the amount subject to obligation has been set at TRY 100,000,000.

GSYF or Incubation Company?

The main reason behind past confusion is how the 3% amount should be utilized. This obligation may be fulfilled either by investing in a startup within an incubation center or by allocating the funds into a venture capital investment fund (GSYF).

Investing in an incubation company, however, involves complex processes such as startup selection, valuation, legal and financial procedures. This makes it a time-consuming, risky, and expertise-requiring approach. On the other hand, venture capital funds offer clear advantages:

• Risk diversification,
• Avoidance of complicated procedures,
• Ability to complete the investment in a short period.

Most importantly, investing in a fund should not only be viewed as a way to fulfil a legal obligation, but also as a long-term financial investment with potential returns.

Since the law introducing R&D-related obligations in 2021, the number of GSYFs in Turkey has reached the hundreds, creating a challenging environment for companies trying to choose. In this context, the guidance of technopark or R&D center administrations and the structure of the funds offered play a critical role alongside the criteria of the portfolio management companies themselves.

Why Boğaziçi Ventures and BV Portföy Funds?

At this point, it is worth underlining that Boğaziçi Ventures and BV Portföy Yönetim Şirketi, founded by entrepreneurs with deep expertise in technology investment, provide optimal solutions tailored to industry needs.

• In the last 3 years, Boğaziçi Ventures has invested in 53 technology startups, making it one of the most active alternative investment companies in Turkey.
• BV Portföy, a 100% subsidiary of Boğaziçi Ventures, manages over TRY 3 billion in assets with more than 3,000 investors, leading investments into early-stage, pre-IPO, and publicly traded domestic and international technology companies.

We believe that sharing summary information on the venture capital investment funds of BV Portföy, available for 2024 R&D obligations, will help companies in their investment decision-making processes.

BV Sinerji GSYF

• Specially designed for R&D incentive obligations.
• No minimum entry amount required, offering a practical solution.
• Focused on the synergy of co-investing with expert lead investors.
• Strategy: acquiring discounted shares from founders and angel investors of healthy, innovative early-stage technology startups.
• Primary investment area: pre-IPO technology companies.
• Also invests in capital market instruments, with profit distribution targeted in future years.

Joygame Pre-IPO GSYF

• A single-asset, relatively short-term fund in the gaming sector, one of Turkey’s most successful tech verticals.
• Particularly suitable for companies with R&D incentive obligations.
• Exit planned by 2028, linked to Joygame’s IPO journey.
• Strategy: support the company’s growth through the IPO process and share in a successful exit.

About Joygame:

• One of Turkey’s first successful gaming companies.
• Since early 2022, has combined publishing capabilities with game development, marketing co-developed games with Turkish studios globally.
• Operates 19 studios, producing mobile, PC, VR, Web 3.0 games, and content applications.
• A central team of ~50 specialists across data analytics, digital marketing, publishing, AI, creative design, and trend research.
• Produces over 100 titles, mainly hybrid casual, online casual, and midcore RPGs.
• Profitable for 10 consecutive years, with revenues growing 4x in the last 2 years.

LT (Liquidity Trading) Pre-IPO GSYF

• Another single-asset pre-IPO fund, with an exit planned by 2029.
• Strategy: support the company’s global expansion and share in its successful IPO exit.

About Liquidity Trading (LT):

• Founded in 2017 by the pioneers of Statistical Arbitrage in Turkey.
• A leader in High-Frequency Trading (HFT) and Quantitative Trading.
• Provides trading technology to Turkey’s largest portfolio management firms.
• Staffed by ~35 engineers (many with MSc/PhD degrees) alongside globally experienced co-founders.
• Achieves 100%+ annual growth since inception, with continuous R&D investments.
• Recently signed a deal with global giant ABN Amro, marking a significant step toward international expansion—becoming the first Turkish firm to go global in statistical arbitrage.

The Advantage of Being Part of the Boğaziçi Ventures Universe

Investing in BV Portföy’s funds should not be viewed solely as a way of fulfilling a legal obligation. These funds also offer financial return opportunities. Furthermore, being part of the Boğaziçi Ventures investment universe provides companies with exposure and opportunities in the startup ecosystem—advantages that cannot be matched by investing in traditional portfolio management companies’ funds.

Final Recommendations

To avoid end-of-year confusion and time pressure, we recommend obligated companies make their investment decisions by early November (even if cash inflows will arrive later in the year) and initiate account-opening procedures with the relevant portfolio management company.

Managing your investments securely, diversifying your portfolio, and minimizing risks are all possible with the expertise of BV Portföy.

For more information: www.bvportfoy.com. | Contact us to invest: [email protected]