Global VC Liquidity Window Reopens for Frontier Tech
A recent increase in biotech M&A and the return of deeptech megadeals are reopening liquidity windows for venture capital funds globally. This trend may benefit Turkish funds with international syndication networks or exposure to frontier technology sectors, improving exit prospects for LPs.
- The rebound in biotech M&A is exemplified by major 2025 deals, including Johnson & Johnson's $14.6 billion acquisition of Intra-Cellular Therapies and Novartis's $12 billion purchase of Avidity Biosciences, signaling a return of large-scale acquisitions after a preference for smaller deals in 2024. - Globally, deeptech investment is being driven by a surge in mega-deals for unicorn startups, with AI-focused companies capturing the majority of venture funding. In the first half of 2025, AI companies accounted for approximately 64% of the total $162.8 billion raised by startups in the U.S. market. - While Turkish venture capital saw a 45% drop in total funding to $589 million in 2025 with a lack of late-stage rounds, significant liquidity events are occurring through strategic acquisitions, such as Uber's $700 million purchase of a stake in the delivery service Trendyol Go. Fintech and gaming remain the most funded sectors, attracting 68% of all capital. - The World Bank has identified Turkey as the middle-income country with the highest potential to benefit from the rising global demand for climate technologies. In 2025, renewables supplied 56.7% of Turkey's electricity, with the country having already achieved nearly a third of its 2035 target for solar and wind capacity. - Turkey's 2026 Presidential Annual Program has elevated artificial intelligence to a core component of state capacity, embedding it across public administration and defense modernization to build sovereign capabilities. The Turkish AI market is projected to reach $1.62 billion in 2024 and grow to $7.37 billion by 2030. - Limited Partners (LPs) are showing renewed optimism for 2025, with many anticipating an increase in distributions to paid-in capital (DPI). This expected return of liquidity is crucial for enabling LPs to commit fresh capital to new venture funds, potentially restarting the investment cycle. - Turkey's macroeconomic policy, centered on high interest rates to combat inflation, is expected to continue impacting the investment climate in 2025. The central bank's policy aims to stabilize the lira and encourage foreign investment, though it has also led to a slowdown in domestic demand and economic growth, projected at 2.8% for 2025.
