We make IP capital investments in growth stage technology companies that have developed breakthrough intellectual property assets based on advanced science and engineering for producing new products and services with an unmatched value proposition and high barriers to competition.
We deliver IP services to assist these deep tech companies in scaling, protecting, and monetizing broader use of their IP assets to meet global demand, including funding and scaling operations, joint ventures, and partnerships in other markets or market segments, industries, and end uses.
In return, we receive an IP royalty, a share of revenues, plus equity-like upside for the value that we help to create with these companies, that leaves ownership and control in the hands of founders and entrepreneurs building the business. Our IP capital investments are secured by the IP assets.
Following the emergence of the internet at the end of the last century and the shift in focus by our nation to investments in digitizing our physical world through software apps and online websites, we witnessed the offshoring of our nation’s manufacturing industries and IP assets to low cost labor markets. This shift has unlocked fierce global competition today that must be addressed as a priority to protect our national security and the light that our nation shines on the world.
We must focus our nation once again, as we did in last industrial revolution, on investments in companies that have developed breakthrough IP assets based on advanced science and engineering that can revolutionize our industries with leaps forward in productivity, efficiency, and performance driving long-term economic growth for our nation, including millions of new jobs and higher wages for people.
To do our part, we will invest billions of dollars in scaling a new generation of these deep tech companies to rebuild our physical world. Our mission is bringing manufacturing back to America and ensuring that our nation is not left behind in the face of global competition.
We invest IP capital in scaling, protecting, and licensing the breakthrough innovations, or "IP assets," of growth-stage technology companies, including expanding operations globally to meet demand, secured by the value of the IP assets, such as new product and equipment designs, know-how, processes, data, patents, trade secrets, and brands.
IP Asset Backed.
We receive a percentage of a company's revenues, or "IP royalty," for use of the IP assets, which allows us to provide our investors with a recurring cash yield, plus equity upside to participate in the value we help to create with IP capital, which is less dilutive for founders and entrepreneurs, leaving ownership and control in their hands.
IP Dividend Paying.
We provide IP management services, including IP operating personnel to assist the company in scaling, protecting, and licensing broader adoption of their IP assets globally, including through joint ventures and partnerships in other markets, industries, and end uses, along with industry operating personnel skilled in expanding the related business operations.
IP Scaling Services.
Our process and our model drive the success of our investment strategy and mission: Finding, Funding, and Scaling a new generation of technology companies with breakthrough innovations — IP —that can deliver greener, more sustainable manufacturing and use of products in an industry that is more efficient and effective — that makes economic sense for businesses and people, not just the environment. These are the kinds of technologies that can rebuild advanced manufacturing back to America. Investing in the future of America in this way is driven by a core belief and faith — demonstrated time and time again throughout the course of our nation’s history — that the more value we create in the world for others through broad adoption of our breakthrough innovations, the more value we create for our nation, our people, and our investors.
We, therefore, look for technology companies that have developed breakthrough innovations that hold the potential to deliver transformative economic value and impact in the world for businesses (higher profits, higher growth) and people (long-term growth in jobs and higher wages) through broad adoption, and that will deliver cash flows (IP royalties from company revenues) to our investors with a low correlation to the ups and downs of stock markets and the state of the economy. Recession proof.
We look for breakthrough IP assets that also hold the potential to produce immeasurable ripple effects in the world when broadly adopted that will bring new opportunities to businesses and people — unlimited potential to benefit humanity — and that will inspire entrepreneurs to develop cascades of new innovations in applying these breakthrough IP assets to meet local needs, globally, and in other applications.
America's prosperity, its freedoms, and its global leadership — the light that it shines on the world — have resulted from exactly this approach in ways that are unparalleled in history: in scaling broad adoption of breakthrough innovations in manufacturing new physical products, from planes, trains and automobiles to the telephone lines that connect our world, to the cellphones and smartphones in our pockets, to the computers and electronics in our homes and offices, to new medicines that save lives, to the Coca Cola that the world drinks.
investing in scaling the manufacturing capacity and operations of companies with new physical products based on breakthrough IP, with the investment strategy to have a lasting impact in the world for people through broad adoption and bring advanced manufacturing to America.
High barriers to competitors developing competing solutions (breakthrough IP involves deep science and engineering based breakthroughs and enabling IP assets for making new physical products that require many years to develop and commercialize, and large capital investments).
Investing in the broader business plan needs of companies with new digital products in high growth markets based on software IP, with the investment strategy to drive higher equity valuations over a series of financing rounds in the hope of achieving target returns in an exit for investors.
Low barriers to competitors developing competing solutions (software IP mostly involves incremental improvements that enable existing businesses and new business models to operate over the internet, i.e., online, through software apps and services on smartphones and computers)
Yes.
Investment secured by the company's breakthrough IP and IP assets (new product designs, know-how, and proprietary manufacturing equipment) and (ii) contracts with customers, suppliers, and partners that enable its business to operate.
No losses expected.
No.
Investment unsecured with venture capital relying on the promise of a company's business plan projections to support higher equity valuations and paper returns at each financing round that are unlikely to be realized in a future company exit.
High losses.
Yes.
We receive a % of company revenues that enables us to pay dividends ("revenue share" or "IP royalty").
No.
% of company equity ownership and no dividends ("equity ownership").
Yes.
We provide IP management, technology, and operations support, along with a shared technology platform for integrating smart manufacturing.
No.
Monitor investments with the promise of sharing access to a network of human resources for growth, the value of which is difficult to predict or determine.
Yes.
We receive an IP royalty buyout % in a future company exit (IPO, sale) that buys out our revenue share or a fund exit that sells the revenue share.
Unlikely.
Equity ownership % in a future company exit (IPO, sale) only, with the exit and its value at high risk due to competitors with competing software solutions.
12%-15% annual cash yield, paid quarterly.
Average annual cash yield over 5 years, ramping up with revenues, from a target low of 5% in early years to 20% or more in later years.
None.
5 years to a future company exit (IPO, sale) or a fund exit that sells the revenue share.
5-10 years to a future company exit (IPO, sale) to grow equity value.
Greater than a 2x net multiple, 20% IRR.
Minimum return for each fund investment because of the differences of the IP Capital investment model.
There is unlimited potential upside in each investment beyond the minimum because the capital and services of the IP Capital model are focused on scaling broad adoption of breakthrough IP.
Less than a 2x net multiple, 20% IRR.
Total return for all fund investments because of the high risk and high losses of the venture capital model.
To make up for the high losses of the venture capital model, the total return targeted in each investment is a 5-10x multiple, 100% IRR, which requires taxing each company with high equity ownership.
No Management Fee.
20% management fee.
Management fee is paid out of fund capital at 2% per year for 10 years for monitoring the progress of fund investments, regardless of performance.
5% transaction fee.
Transaction fee is paid one-time upfront on top of Fund capital for the added disciplines of the IP Capital investment model and process and to support building the mission and community.
Not applicable.
20% of fund profits.
Fund profits from the revenue share and from the IP royalty buyout in a future company exit, or a fund exit that sells the revenue share.
20% of fund profits.
Fund profits from the equity ownership in a future company exit.
Growing company revenues.
Real value. Low correlation to the ups and downs of stock markets and the state of the economy.
Growing company equity value.
Speculative value. Highly correlated with the ups and downs of stock markets and the state of the economy.
A proven team, model, and process, mission driven, for investing in companies with breakthrough IP having a low correlation to the ups and downs of stock markets and the state of the economy, that is asset backed, and that provides a cash yield and the potential for exponential growth in returns in a future company exit (IPO, sale).
Access to capital for building out manufacturing capacity and operations to meet customer demand and secure contracts, a shared technology platform for integrating smart manufacturing, and IP services to protect, optimize, and scale use of the IP assets, without giving up equity ownership or control or being forced to exit.
Broad adoption of breakthrough innovations that can build a better world for humanity , including produce long-term growth in jobs and higher wages for people and their communities, and will lay a foundation for bringing manufacturing back to America to ensure our nation is not left behind in the face of global competition.
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Investing involves risk, including loss of principal, and past performance does not guarantee or indicate future results. Any returns, historical or projected, may not reflect actual future performance. While information from third parties is believed reliable, we cannot ensure the accuracy or completeness. Offers to sell, or solicitations of offers to buy, any security can only be made through official offering documents that contain important information about investment objectives, risks, fees and expenses. Prospective investors should consult with a tax or legal adviser before making any investment decision.
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