We developed a way to make Venture Capital a much safer investment.
Our quantitative VC portfolio captures everything from unicorns over 30x-ers to 3x-ers, makes it very unlikely investors lose money and generates a stable stream of yield around 25% per year.
Also, we can tell you how our portfolio will perform up to 6 months in advance with 85% accuracy.
We use accelerator ecosystems to assess risk and return with high accuracy.
The core of the i2X system is a comprehensive database and analytics engine that captures high-resolution investment data of the leading U.S. startup accelerators. It allows us to see how each accelerator performed; to design accurate risk-profiles based around their inter- and intra-batch deviation; and blend multiple accelerators together in ways that mitigates risk most effectively. Since we invest directly in startups, not in the accelerator funds, we keep portfolios transparent, lean and highly accurate.
We are finance geeks and Silicon Valley veterans.
Yes, we are risk engineering geeks with backgrounds in financial theory and debt derivatives. But we also have deep experience in starting and accelerating Silicon Valley startups. We are aware that closing deals is non-trivial; that entrepreneurs want effective partners, not just money; that you need to stay in the game after you seed-invest; and that a new source of scalable capital can create bubbles if it's not managed well. We believe that being smart about risk doesn't put us at a disadvantage to other seed funds or angels; in fact, we think a smart, lean and well-connected fund can add more value than any individual angel can.
We believe this is a big f...ing deal ("financing". We meant "financing".)
Some diversified VC LPs out there told us "25% is not what we are looking for in a VC fund". Common wisdom seems to be VC funds should aim at 80% IRR, and then deliver -10%. That's fine if you have enough money to spread your bets across 15 funds. In the end, your total VC fund portfolio will return 12% if you are lucky. The question is - why go through all the trouble if you can get a higher total return with far less effort and far less risk?
Even more importantly, a quantitative VC portfolio allows us to build more advanced financial products on top of it. Once the performance and predictability is validated over a series of quarters, it can issue bonds that are secured by portfolio assets. Since returns are stable and risk is mitigated, the management of bonds becomes possible. And once we convert startup performance into bond products, VC becomes liquid, reliable and easy. Welcome to the future.
Our secret: we help entrepreneurs
i2x sounds like a great new financial product. But before all, it is about entrepreneurs and empowering pioneers to create more value. The reason i2X can remove a large share of risk and heavily outperform other asset class is not financial engineering, but our ability to deploy capital into a lot of technology pioneers. Conventional angels and VCs create massive friction for seed stage entrepreneurs by insisting on due diligence processes that don't make any sense at this stage. The result is that the vast majority of pioneers won't get funded; and that those who do get capital because of their relationships, not because of their quality. With i2X, we empower accelerators to identify great pioneers earlier and in more professionalized ways; and create more innovation, everywhere.
Publications
Here are some articles and papers that explain i2X a little more in-depth.
Quantitative VC - A New Way to Growth
in: The Journal of Private Equity
Nuggets vs. Pioneers
in: AllAboutAlpha, a CAIA plublication
Why VC has to become a scientific investment discipline
in: Opalesque
Our quantitative VC portfolio captures everything from unicorns over 30x-ers to 3x-ers, makes it very unlikely investors lose money and generates a stable stream of yield around 25% per year.
Also, we can tell you how our portfolio will perform up to 6 months in advance with 85% accuracy.
We use accelerator ecosystems to assess risk and return with high accuracy.
The core of the i2X system is a comprehensive database and analytics engine that captures high-resolution investment data of the leading U.S. startup accelerators. It allows us to see how each accelerator performed; to design accurate risk-profiles based around their inter- and intra-batch deviation; and blend multiple accelerators together in ways that mitigates risk most effectively. Since we invest directly in startups, not in the accelerator funds, we keep portfolios transparent, lean and highly accurate.
We are finance geeks and Silicon Valley veterans.
Yes, we are risk engineering geeks with backgrounds in financial theory and debt derivatives. But we also have deep experience in starting and accelerating Silicon Valley startups. We are aware that closing deals is non-trivial; that entrepreneurs want effective partners, not just money; that you need to stay in the game after you seed-invest; and that a new source of scalable capital can create bubbles if it's not managed well. We believe that being smart about risk doesn't put us at a disadvantage to other seed funds or angels; in fact, we think a smart, lean and well-connected fund can add more value than any individual angel can.
We believe this is a big f...ing deal ("financing". We meant "financing".)
Some diversified VC LPs out there told us "25% is not what we are looking for in a VC fund". Common wisdom seems to be VC funds should aim at 80% IRR, and then deliver -10%. That's fine if you have enough money to spread your bets across 15 funds. In the end, your total VC fund portfolio will return 12% if you are lucky. The question is - why go through all the trouble if you can get a higher total return with far less effort and far less risk?
Even more importantly, a quantitative VC portfolio allows us to build more advanced financial products on top of it. Once the performance and predictability is validated over a series of quarters, it can issue bonds that are secured by portfolio assets. Since returns are stable and risk is mitigated, the management of bonds becomes possible. And once we convert startup performance into bond products, VC becomes liquid, reliable and easy. Welcome to the future.
Our secret: we help entrepreneurs
i2x sounds like a great new financial product. But before all, it is about entrepreneurs and empowering pioneers to create more value. The reason i2X can remove a large share of risk and heavily outperform other asset class is not financial engineering, but our ability to deploy capital into a lot of technology pioneers. Conventional angels and VCs create massive friction for seed stage entrepreneurs by insisting on due diligence processes that don't make any sense at this stage. The result is that the vast majority of pioneers won't get funded; and that those who do get capital because of their relationships, not because of their quality. With i2X, we empower accelerators to identify great pioneers earlier and in more professionalized ways; and create more innovation, everywhere.
Publications
Here are some articles and papers that explain i2X a little more in-depth.
Quantitative VC - A New Way to Growth
in: The Journal of Private Equity
Nuggets vs. Pioneers
in: AllAboutAlpha, a CAIA plublication
Why VC has to become a scientific investment discipline
in: Opalesque
