What Is a Pre-IPO Fund?

ARTICLES
September 9, 2023

BV Portföy stands out as a major player in the investment world with its wide range of products. One of its most notable upcoming offerings is the Pre-IPO funds, which provide investors access to shares of privately held companies, allowing them to invest in high-potential, growth-stage companies before they go public.




BV Portföy stands out as a major player in the investment world with its wide range of products. One of its most notable upcoming offerings is the Pre-IPO funds, which provide investors access to shares of privately held companies, allowing them to invest in high-potential, growth-stage companies before they go public.

Capture the Future Today with “Single Asset Pre-IPO” Funds

In today’s rapidly evolving financial markets, investment strategies are constantly changing. In addition to traditional investment instruments, investors have started showing interest in Single Asset Pre-IPO funds. As the name suggests, these venture capital funds focus on investing in a single company and the ecosystem that adds value to it. They are specifically designed to support a company approaching an IPO or a direct sale, enabling investors to benefit from its value appreciation potential.

Unlike other venture capital funds, Single Asset Pre-IPO funds concentrate exclusively on a single company. This focused approach requires a tailored and highly targeted strategy. Generally, investments are made in companies close to their IPO stage, where the company’s growth potential becomes the most critical factor in determining returns. Additionally, these funds may also invest in related ecosystem ventures that contribute to the company’s value creation.

Advantages and Risks of Investing in a Single Company

While investing in a single company might seem risky, it also offers several advantages:

  • Concentration and Focus: All energy and resources are directed toward one company.

  • High Return Potential: A successful late-stage company can yield substantial returns.

  • Strategic Collaboration Opportunities: Close cooperation can further enhance the company’s growth.

  • Industry and Technology Insight: Specialization in one sector allows for deep analysis and expertise.

Accessibility for Investors

Pre-IPO funds allow investors to participate in high-potential late-stage investments with relatively small amounts. They also provide access to large-scale investments while ensuring investors’ rights are protected through the fund structure, which also guarantees representation in company management.

Successful Examples Worldwide

There are many successful examples of Pre-IPO funds globally, with Silicon Valley being one of the key hubs for such investments. For instance, Sequoia Capital invested early in tech giants like Airbnb, WhatsApp, and Google through these funds, achieving remarkable success. In 2011, an $8 million investment in WhatsApp played a crucial role in its rise as one of the world’s most popular messaging apps, which was later acquired by Facebook in 2014 for $19 billion.

Pre-IPO Funds in Turkey and Boğaziçi Ventures

While advanced investment ecosystems often use SPV (Special Purpose Vehicle) structures for late-stage investments, tax advantages in Turkey make GSYFs (Venture Capital Investment Funds) a more practical option. BV Portföy, a subsidiary of Boğaziçi Ventures, has been managing both venture capital funds and thematic funds investing in publicly traded technology companies since its founding. Currently, fundraising has begun for two different Pre-IPO GSYFs.

Joygame and Liquidity Trading Investment Opportunities

  • Joygame Pre-IPO GSYF: Offers an opportunity to invest in Joygame, one of Turkey’s first gaming companies, which has grown 18x over the last two years. Joygame has over 100 million registered users across PC and mobile platforms and develops games in various genres with 19 studios worldwide. For more details, visit our website or contact us at [email protected].

  • LT Pre-IPO GSYF: Provides investors the chance to invest in Liquidity Trading, a Fintech company transforming capital markets with AI-powered high-frequency trading (HFT) solutions. The company has been growing profitably at over 100% annually and plans to accelerate its European expansion following this investment. For more information, please contact us at [email protected].

About Boğaziçi Ventures

Boğaziçi Ventures focuses on establishing and managing funds that invest in technology companies while adding value to its portfolio companies. The partners actively engage with technology ventures, supporting entrepreneurs in achieving international success. Boğaziçi Ventures also designs and manages custom funds tailored to investors’ specific needs.