A New Model for Technology Innovation

We believe that following such an investment strategy represents the most efficient economic model for technological innovation.  This is because invention is fueled by the rewards and independence of entrepreneurship and revenue harvesting is enabled by the resources and industry experience provided by strategic acquirers.  Unlike the traditional venture capital model that encourages an innovative company to develop significant market share on its own before exiting, we distinguish between two very different phases of a business:

Entrepreneurship - invention and innovation occur outside of the rigid structure of large corporations and can be accelerated by small groups working very closely together, shielded from corporate bureaucracy and motivated by the financial rewards that are unachievable within large corporations.  Within the sectors covered by the fund, this steep development curve prior to full commercialization is relatively inexpensive and is far more efficient outside of a large corporation.

Intrapreneurship - once a product or service is fully developed and the business focus shifts to market exploitation and revenue generation, the benefits of entrepreneurship are outweighed by the rewards of housing the product or service and the management team within a large corporation that commands a leading position in its industry.  Large corporations enjoy established sales and marketing channels, cost-effective and bulk supplier relationships, complimentary products and intellectual property, and the significant financial muscle to fund the long road to profitability.

We believe that significant value can be generated by investing during the entrepreneurship phase and exiting immediately prior to product/service commercialization and the intrapreneurship phase.