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The Risks of Deep Tech are Misunderstood: Bridging the Investment Gap

Deep tech innovations have the potential to reshape industries and drive significant technological advancements. However, these groundbreaking ventures often face challenges in securing funding due to misconceptions and knowledge gaps within the investment and funding space.


We believe that a structured approach to timelines and funding can mitigate the perceived risks of deep tech investing and bridge the knowledge and investment gap. Our PIPI fund model exemplifies this approach.


Misconception 1: Endless Funding Requirements

One of the key misconceptions surrounding deep tech is the belief that it requires endless funding compared to scalable SaaS and digital innovations. While deep tech projects often have longer development timelines and higher upfront costs, this does not necessarily mean they are unviable. Investors must recognize that deep tech innovations can yield substantial returns in the long term. By understanding the unique nature of these ventures, funding can be allocated strategically, allowing for innovation and growth without overburdening resources. Additionally, a new source of return is needed to justify the additional time and capital needed to develop deep tech opportunities, and this is where our intent for multi-market licensing plays a considerable role in the process.


Misconception 2: Reluctance of Generalist Funds

Many generalist funds are hesitant to invest in deep tech due to the specialized knowledge and expertise required to assess their potential. Deep tech innovations often involve complex scientific and engineering principles, making it difficult for investors without a technical background to evaluate the technology's viability. However, this knowledge gap can be bridged by collaborating with domain experts and establishing partnerships with research institutions. By bringing together multidisciplinary teams, investors can gain a deeper understanding of the technology and make informed investment decisions.


Mitigating Risks: Aventurine's PIPI Model

Our PIPI (Perpetual IP Income) fund offers a solution to the challenges faced by deep tech startups. This structured approach involves breaking down the development process into distinct stages, allowing investors to assess progress and manage risks effectively. By providing funding at each milestone, the PIPI model ensures that resources are allocated based on tangible achievements rather than vague promises. This not only mitigates financial risks but also encourages transparency and accountability, fostering trust between investors and deep tech entrepreneurs. This investment approach gives us multiple shots on goal through multiple market licensing and the ability to incubate additional go to market startups, thus providing more opportunity and consistently mitigating risk.


Bridging the Investment Gap

To unleash the full potential of deep tech, it is crucial to bridge the investment gap by addressing the knowledge gaps and misconceptions prevalent in the funding space. Investors should actively seek opportunities to educate themselves about deep tech innovations, collaborate with technical experts, and build networks within the scientific and engineering communities. By doing so, investors can make informed investment decisions and provide the necessary support for deep tech startups to thrive.


While deep tech innovations may initially appear risky due to their unique funding requirements and the specialized knowledge they demand, these risks can be mitigated through a structured approach to timelines and funding. Aventurine's PIPI model provides a safe and transparent investment framework, encouraging the growth of deep tech ventures. By debunking misconceptions and bridging the knowledge gap within the investment and funding space, we can unlock the immense potential of deep tech, paving the way for transformative technological breakthroughs and fostering innovation on a grand scale.


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