Liquidity Trading Pre-IPO VC Fund: An Investment Opportunity in a Fintech Leader

Venture capital investment funds (VC Funds) generally invest in multiple startups at stages aligned with their investment strategies. However, mature ventures that have proven themselves in terms of technology, growth, and profitability can also be included in a VC fund as a single company and opened for investment. These types of funds are known in English as Single Asset VC Funds.

Single Asset (Single Company) VC Fund

Venture capital investment funds (VC Funds) generally invest in multiple startups at stages aligned with their investment strategies. However, mature ventures that have proven themselves in terms of technology, growth, and profitability can also be included in a VC fund as a single company and opened for investment. These types of funds are known in English as Single Asset VC Funds.

Some investors prefer to invest in single-company VC funds for several reasons:

• Maturity & Reduced Risk: Since the company in question is more “mature,” the exit period is shorter, and the risk level is lower compared to early-stage startups.
• Lower Entry Barriers: Acquiring equity directly in such a company requires a much higher minimum investment compared to becoming an investor through a fund.
• Tax Advantages: In Türkiye, for investors interested in the company’s sector, investing via a fund instead of acquiring shares directly offers significant tax advantages.

At Boğaziçi Ventures and BV Portföy, in addition to our multi-asset funds that invest in multiple startups, we also offer single asset funds that invest in one company. This article focuses on the details of the Liquidity Trading Single Asset Pre-IPO VC Fund.

Liquidity Trading: A Unique Fintech Company

Founded in 2017 by partners with extensive experience in statistical arbitrage both in Türkiye and abroad, Liquidity Trading (LT) is a pioneer in Türkiye in the fields of High-Frequency Trading (HFT) and Quantitative Trading (quant strategies).

• LT develops algorithms and infrastructures that automate stock trading with minimized risk and cost, achieving unmatched 300-nanosecond order speeds in Türkiye.
• The company provides infrastructure to leading portfolio management and brokerage firms in Türkiye, including BV Portföy, Ziraat Portföy, Neo Portföy, Tacirler Yatırım, and Halk Yatırım.
• LT’s FPGA-based processors, compatible with NASDAQ protocols, integrate data processing and exchange connectivity into a full end-to-end HFT product.
• Approximately 5% of Borsa İstanbul’s trading volume is processed through LT-powered funds.
• Currently, 11 funds rely on LT’s infrastructure, managing a total AUM of ₺9.5 billion.
• LT-backed funds rank in the top three of their class by performance.
• LT operates with an EBITDA margin exceeding 80%.
• Its team of 45 finance engineers and quantitative researchers, 90% of whom graduated from Ivy League universities, brings over 15 years of expertise.

LT Pre-IPO VC Fund: A De-Risked Investment Structure

Investment Thesis
LT stands out as a first mover with dominant market share, proven expertise, and deep collaborations with Türkiye’s leading financial institutions. Its planned international expansion—targeting Nasdaq, Eurex, Tadawul, and ADX, along with partnerships with major banks like Goldman Sachs and JP Morgan—further strengthens the investment case.

• Strong performance and leadership in Türkiye’s statistical arbitrage funds.
• Expected Eurex collaboration as a milestone in global scaling.
• Potential strategic acquisition interest from global HFT leaders such as Citadel, Optiver, and Virtu.
• Scalable infrastructure with 88% gross margin and low marginal cost.

Fund Launch & Structure

• Launch Date: 31 May 2024
• Target Fund Size: USD 8 million
• Fund Size (as of 15 Sept 2025): ₺296 million
• Exit Horizon: By 2029, through IPO or direct sale
• Expected Return: 5–6x in USD terms

Hybrid Structure:

• 51% allocated as equity investment into LT for scaling.
• 49% allocated to LT-managed quant funds for USD-based returns with downside protection.

This hybrid approach minimizes risk while maximizing upside potential.

Who Should Invest in LT Pre-IPO VC Fund?

• Investors seeking exposure to a proven fintech leader in Türkiye with international growth potential.
• Investors preferring shorter exit horizons compared to multi-company funds.
• Corporates under R&D incentive obligations seeking fintech-focused investment opportunities.
• Corporate taxpayers looking for significant tax shields.
• Both individual and institutional investors aiming to optimize returns via quant strategies and company value appreciation.

 At Boğaziçi Ventures and BV Portföy, we diversify our VC fund portfolio across investment areas, strategies, maturities, and risk levels—always within the umbrella of technology. Our goal is to support the ecosystem while delivering optimal returns tailored to diverse investor profiles.