Bogazici Ventures launches $346m triple fundraise

Erdinc Ergenc (Mergermarket)
12 April 2019

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Turkey-based VC firm Bogazici Ventures is in the process of launching three funds with a combined target of $346m, chairman Baris Ozistek said.

The GP has launched a $100m Crypto Fund to invest in initial coin offerings (ICO), securitised token offerings (STO) and other cryptocurrencies. It has also launched a TRY 300m (~€46m) Growth Fund to invest in Turkish startups. The firm expects to hold a first close for the growth fund on around half its target in April.

In June, Bogazici will also launch a $200m MENA Fund to invest in eastern Europe, the Middle East and north Africa in June with a close expected in 2020.

The MENA fund will be co-managed with a Dubai-based GP, MBF Holdings.

The firm raised one fund prior to the current raises: a $20m vehicle with commitments coming from family and friends. It is fully deployed across 18 deals.

Investors
Insurance funds, universities, the Scientific and Technological Research Council of Turkey (Tubitak) and family offices are the main investors in the Growth Fund, according to Ozistek. Private individuals (qualified investors) are also allowed to participate in the fund, according to the Turkish regulation.

Investments
The Crypto Fund is an open-ended fund with lock-up periods. The fund will allow Bogazici to invest in ICOs and STOs, as well as in the cryptocurrencies and trading of them.

The Crypto Fund will manage four types of sub-portfolio funds; the first is the Top 30 fund, where the leading 30 cryptocurrencies are on the investment radar. Top 100 Fund will invest in the crypto currencies according to their market caps. The third fund invests in ICOs and STOs. The last one is a Hybrid Fund that invests in the mix of the first three funds.

The Growth Fund plans to invest in startups at growth and scale level, with a strong team and a working product that has caught a solid traction, the chairman said. Even though every case is different, it would primarily seek startups that are generating revenues, Ozistek said.

The Growth Fund will invest in post-seed, pre-series-A and series-A rounds with a first ticket size of between $300,000-500,000 with a total of $2m for each venture.

The MENA Fund will invest in late series-A or series-B startups with ticket sizes between $2-5m, though it could increase this to $10m with follow-on investments.

People
Bogazici Ventures – Baris Ozistek (chairman).