Pangaea Blog

Pangaea invests in early stage cleantech companies with world-class advanced materials innovation.

An article published recently on by Martin Zwilling highlights his recommendations for “10 calculated risks that lead to startup success”. This article, like so many others, provides some great insights for wannabe or existing founders and entrepreneurs. However, what if you’re in a business that is more capital intensive, has longer iteration cycles or addresses more complicated problems. Say, involving materials or chemistry development?

What's in a Name?

Posted by on in Venture Capital

A while back, Pangaea General Partner Keith Gillard wrote a blog about our proactive approach to generating dealflow and evaluating potential solutions to identified market needs (found here). A consequence of this proactive strategy is that we interact with a whole lot of startup companies from around the world. While the majority of these companies are attempting to commercialize exciting materials technologies to solve some of the world’s bigger problems, we tend to be quite selective in where we place our money. For a typical VC, the percentage of companies invested in compared to companies evaluated is 1% or less. There are many reasons for this, ranging from a lack of confidence in the management team’s ability to execute to technology differentiation to IP concerns to expected long time horizons to revenue generation and possible exit.

Prying Open the Licensing Toolkit

Posted by on in Venture Capital

As discussed last week in my blog entitled Add Licensing to your Business Model Toolkit, licensing is an important tool for the advanced materials start-up CEO. However as I pointed out last week, concerns about value capture and loss of market influence cannot be ignored if the goal is to build a valuable and important business capable of generating venture capital returns. Furthermore, when licensing technologies in energy or industrial markets that often place less value on IP compared to IP-centric businesses such as IT and biotech., deal creativity can be the order of the day. The four tactics described below should be considered in formulating a start-up company licensing strategy:

Venture capital investments in “hardware” companies such as advanced materials start-ups have typically focused on productization and scale-up as the key value creation activities. Partnering in the form of joint ventures, joint development or distribution agreements have traditionally been the business model of choice. Licensing models are often shunned with the argument being that you leave money on the table and your ability to influence is lost while fate is determined by corporate and market forces beyond your control. Valid points! But these issues can often be mitigated and should be weighed against the advantages of licensing, of course in the context of the market dynamics and industry structure that is faced.

A little over a year ago I wrote a blog post about the advantages of including women in your team. If you're interested in reading about how your team WILL BE smarter, I encourage you to check it out here: Women: A Start-up’s Secret Weapon.

An opinion piece I read in a national newspaper this morning has prompted me to pen a quick follow up. Not to discuss how we can make our teams smarter, but how we can encourage more women to engage with technology and take a real leadership role in engaging with 'change the world' opportunities. Tenaciousness, take-charge attitudes, and leadership skills (also sometimes known as bossiness) are all qualities men and women alike must develop if they desire to be successful entrepreneurs (I'll expand on this shortly).