A Material Impact on Returns

Posted by on in Venture Capital

What has been the fastest growing category within the asset management market over the last few years? Quantitative or AI-driven strategies would be a good guess but you can feel warm and cozy that, in fact, impact investing has actually led the way. Impact investments are made with the intention of generating social and environmental returns alongside financial returns. Compared to global debt and equity markets in the range of $200 trillion (BNY Mellon, 2016), the size of impact -related assets is probably three orders of magnitude smaller, depending on how and who is counting. Nevertheless, in the 2017 Annual Impact Investor Survey prepared by the Global Impact Investing Network (GIIN), surveyed managers expected to increase dollars invested by 17% in 2017 versus 2016.

According to Fundable1, fewer than 1 in 100 startups are funded by angel investors. Funding from venture capitalists is even rarer at about 1 in 2,000 (0.05%) companies. For a firm that prides itself in proactively finding advanced materials investment opportunities (as described here by Pangaea GP Keith Gillard), that means we’re screening a lot of companies that we don’t end up investing in. By the numbers, many of these companies often don’t end up raising outside investment from other VCs or angels either...

Sparking Innovation

Posted by on in Venture Capital

There are few career paths I can think of that are more challenging than trying to launch a new venture whose success is centered around the development and subsequent roll-out of a new technology. We have countless success stories to point to, and entrepreneurs who are revered, almost worshipped, … but what is often left out is truly how long it took, and how much money (including academic research dollars, grants, and private capital) was required to get there.

The Only Woman In The Room

Posted by on in Venture Capital

When Fortune magazine released an update to their 2014 study on women in venture capital last month concluding that (big surprise) not much has changed, I was asked to write a follow up to a blog I wrote 2 years ago titled “women: a start-up’s secret weapon”. You can access this posting here – but the key takeaway is that studies have shown when you add a woman (or a few of them) to your team, the intelligence of the group rises. Shocking right?

Since the initial 2014 study – women are still grossly underrepresented in venture capital (if you can even call 4% at the senior levels representation), not to mention in STEM (science, technology, engineering, medicine) companies across the board. 

You may have noticed we changed the website recently. Good opportunity to write a blog to explain in more detail!  Pangaea's been focused on advanced materials venture capital since its first fund launched. Every investment we've made since 2003 has been exclusively in advanced materials. However, the way we look at the sectors has evolved over time. For our third fund, launched in 2011, we had five different areas of interest, three of which were in energy (generation, storage and efficiency), with the other two being sustainable materials / processes and environmental. Now, four years into that fund, we can look at most of its portfolio (we still have dry powder to do a few more deals this year) and see most of the investments have been in the non-energy areas. Indeed, most of our deal flow has come from the non-energy sectors.