Why We Took a Different Approach to Investing
Breakthroughs in deep tech have the potential to solve the world's problems, but only investing in deep tech isn’t the simple solution. Funds and incubators that are actively investing in deep tech are doing so in 10 to 20-year cycles, which have shown some success in getting the initial innovations to market. However, the decades of work are not being used to devote the time and effort needed to grow and expand these breakthroughs to their full potential.
Deep Tech investments become viable through early-stage intellectual property assets, a methodology that has been proven in the market. Yet funds and companies continue to treat deep tech as any other asset class without realizing the unique, long-term investment model and commitment that deep tech IP needs to flourish.
Traditionally when IP is acquired, the IP is held in the operating company and is often neglected because the initial investment is made into the operating company. The result of this is often a not fully realized return because the IP has not been nurtured and fully developed. This leads to one large innovation coming to market, which is good for investors, but is siloed and misses the opportunity to develop a product that has multi-market applications. Essentially, that way of operating misses the larger idea - that foundational technologies can be optimized across various markets.
At Aventurine, we look at which industries are in need of innovation and invest in the potential breakthroughs that we see flourishing into a multifaceted business. We have seen other funds and incubators actively avoid investing in these long-term applications for inventions due to their attachment to the traditional venture mindset. These investment tactics lead funds to avoid investing in inventions that can take years to show returns, despite their potential to change the world for the better. That is why we have developed a solution to early-stage deep tech investing, as our perpetual fund fits all of the needs of this burgeoning asset class: long-term, actively managed, carefully structured investments.
U.S. investment firms waste $1 trillion annually in underused IP assets by failing to extract the full value of that intellectual property. At Aventurine we’re looking to not only solve this issue of IP asset value, but also have the capacity to generate returns while continuously screening for IP that we can grow and bring into multiple markets.
Our unique ability to identify, capture, and develop early-stage IP is special, but our expertise in being able to assess and arrange returns and incentives around the underlying technology by taking the intellectual property, isolating it, and generating revenue streams is what makes Aventurine different.