Pangaea invests in start-up companies that use advanced materials to make our world better. Breakthroughs in advanced materials are becoming increasingly important for companies to excel in almost any market. Advanced materials are solving fundamental problems necessary to make products more efficient, sustainable, less expensive, and better performing, key attributes necessary for widespread adoption of any product. Pangaea's current fund is focused on advanced materials within energy, electronics, health, and sustainability.
Of course, the disciplines of chemistry, biology, and materials science extend well beyond these four sectors, but we cannot be experts in every discipline. Therefore, we don't invest in such areas as pharmaceuticals or weapons, despite the obvious chemistry and materials science content there.
Pangaea is focused on achieving superior exits and returns for our investors, which drives a strong preference for capital efficient businesses. We like to hold significant minority stakes in companies and maintain those stakes over all stages of financing. It is important that the future capital requirements of any portfolio company be a fit for our fund.
Our investment thesis is technology- and IP-driven. Most high-multiple exits have been achieved by start-ups with a significant patent portfolio, offering excellent protection from competitors. This makes the acquisition target a very attractive growth platform for acquiring companies.
Of course, the strength of the entrepreneurs is critically important to our decision to invest, as well as to the success of the start-up. Pangaea's portfolio boasts management teams coming from the highest levels of major multinationals as well as "Golden Touch" serial entrepreneurs.
With all this and more in mind, Pangaea is actively investing in companies using advanced materials to make our world better.
Pangaea’s offices in Vancouver and New Jersey give us a broad geographic reach across North America. Additionally, our global Strategic Limited Partner relationships in Asia, Europe, and the Middle East open doors for our portfolio companies to access global markets, supply chains, and manufacturing opportunities.
North America is the source of rapid, disruptive advanced materials innovation. Innovation is occurring against a backdrop of increasing market interest in new materials-related technologies coupled with a strong public demand and attractive financial incentives for the adoption of clean technology. This is being driven partially by unprecedented amounts of research and development at universities, national research centers, and early-stage companies. Leveraging billions of dollars in government funding, North American scientists and engineers are at the forefront of transitioning novel, innovative materials technology from academia to industry. This critical support for early stage research and innovation creates tremendous opportunity for complimentary venture capital investment.
Europe has become increasingly important in Pangaea's deal flow. Well-established academic leadership has nurtured a culture of technical innovation, resulting in a wealth of breakthrough advanced materials companies. However, the European venture capital market is somewhat less competitive than in North America, which means that the European deals often have very attractive valuations. Pangaea expects its European activity to increase in the coming years.
Advanced materials innovation knows no boundaries, and therefore Pangaea also evaluates compelling technologies and start-up companies around the world. In selecting the technologies and companies most likely to succeed, it is critical to consider the global marketplace.
Pangaea invests in companies through our venture capital funds. In return, we ask for board representation and a significant minority stake in the company. We syndicate all of our deals, bringing the world’s most successful venture firms and strategic investors into every financing round of each our portfolio companies.
Pangaea is able to provide assistance in many areas critical to a company's development. We have a track record for identifying innovative advanced materials technologies, as well as decades of operational expertise relevant to the sectors in which we invest. We have structured a wide variety of investments, mergers and acquisitions, at every stage of company development. In addition, we bring valuable networks for raising capital, establishing strategic relationships, and executive recruiting.
On top of providing financial and human capital resources, Pangaea brings our partner companies into an influential network of very special relationships. These include inroads to some of the world’s largest industrial and chemical companies, many of which have invested in Pangaea funds. Pangaea also has connections to the financial community, national and international business affiliations, industry experts, and professional specialists.