Elevated chances with manageable risks result from our early involvement in projects that address larger than average markets and contain little risks because of their careful selection and their proprietary protection.
However, it is part of the nature of corporations which develop future technologies that it often is impossible to foresee when the technology will crack the market. This again is opposed by realistic chances of substantial returns. The MP3 technology, designed by the Fraunhofer Gesellschaft, is a good example: It was only after more than 20 years of development, that the technology resulted in profits – but then it was in the billions.
All our projects contain the potential of grass roots technologies. To benefit there from, we follow a clear strategy regarding the design and the management of our portfolio:
- On one hand, shares in companies that are in their earliest stages of development will be acquired. This ensures a maximum potential of being profitable.
- On the other hand, we participate in technologies that already have gone through several years of development and are on the verge of realization. So the risk of a long time-to-market is being substantially reduced and constant turnover can be achieved.
- Our portfolio consists exclusively of companies that fulfill our strict criteria in regards of diversification, feasibility, team excellence, scalability, safety ethical innocuousness and last but not least profitability.
So the target companies are primarily capitalized by equity to eliminate the exposure to debts, in may cases they qualify for subsidies, they cater a (sometimes exponentially growing) future market and they are secured by property rights, patents and licenses with long periods of validity. Furthermore this leaves the option to realize infringement opportunities (patent infringement claims) and grants the investor sustainability and great opportunities.