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Early-Stage IP Investment: Not as Risky as You Thought

Investing in an early idea seems scary to most investors, and investing in an idea that needs nurturing and structure is even scarier. Tech-focused startups have become riskier investments and even tougher to exit with returns. At Aventurine, we created the Perpetual IP Income (PIPI) fund to enable investing in early-stage IP to leverage the fact that IP is highly malleable and may be adapted to new markets.


When you begin to look at which industries need innovation -- and invest in potential breakthrough technologies that can flourish in multiple markets -- the idea of investing in early-stage IP is a no-brainer. The ability to revolutionize more than one sector of technology is an incredible investment opportunity that can only begin with early-stage innovation.


At Aventurine, we have learned over decades of experience that investing in early-stage innovation is actually less risky than in traditional tech startups. With PIPI-style investments, investors obtain typical venture-style returns while the downside is protected and mitigated by diverse sources of IP-licensing income. PIPI funds also offer the ability to commercialize through more than one startup, generating additional streams of capital gains.


In addition to protecting the downside, PIPI funds have the potential to generate returns that vastly outstrip traditional VC. By licensing technology into multiple markets, PIPI funds create diverse sources of income and dramatically boost returns. In pure financial terms, rather than optioning a single company, PIPI funds option entire markets.


Early-stage IP is the root of all innovation, and ultimately all high-growth tech companies. Many budding ventures end up in the startup graveyard because very few made the most of their intellectual property. For true deep tech companies, the only way to reliably invest is through a PIPI fund whose investments are vetted and managed by experts in developing and commercializing IP along with more traditional startup coaches and board members. The Aventurine team has world-class experts with this background.


When you invest in early-stage, foundational IP you are investing in potentially world-changing technologies that will impact multiple markets, and while unicorn venture investing is superficially appealing, it is far riskier than the consistent returns and diverse streams of licensing revenue from a PIPI fund.

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