i2X captures the world’s best startups in large clusters
at a superior investment performance
i2X is a new infrastructure for institutional investors to capture large clusters of the world’s best technology startups. i2X startup clusters historically achieve 30%+ p.a. IRR at a near-zero risk of loss and a size of $20m to $200m.
i2X combines a network of the world’s best startup accelerators with a financial analytics layer that gives high-resolution insight into the historic performance of each individual startup within these ecosystems.
Based on this hybrid system, we can design and execute optimized clusters of 100+ startups that maximize the chance of capturing the next big winners, minimize the losers, and optimize everything in between.
i2X IN THE PRESS
BETTER FOR ENTREPRENEURS
i2X brings capital faster and at an earlier stage to startups than conventional Seed or Venture Capital (VC). It offers fairer, standardized terms and lower equity stakes to entrepreneurs, and allows them to focus on innovating, not fundraising. By becoming part of a larger, structured seed cluster, startups connect to a wide range of top level corporate and capital partners, leading to faster incubation and seamless follow-up investments for founders.
ROBUST RISK MITIGATION
Large scientifically designed clusters of startups dramatically reduce risk on several important dimensions: returns become more stable over time, the risk of portfolio loss can be mitigated below 1%, and the chance of exceeding 20% p.a. portfolio IRR moves to 50%+. By capturing large, scientifically optimized clusters of technology startups at the earliest stage, investors can turn volatile Venture and Seed Capital returns into a stable source of superior yield.
DEEP QUANTITATIVE ANALYTICS
Using analytics methology and technology used in scientific hedge funds and fixed income trading desks, i2X introduces a new level of predictive analytics to VC. i2X allows institutional investors to systematically capture the upside of technology innovation without solely relying on human judgement, which results inevitably in a “spray and pray” approach. By using the first deep and comprehensive data and analytics framework for VC, sophisticated investors can integrate i2X as a predictable source of low-correlated yield into balanced asset portfolios.
A SOURCE OF SUPERIOR YIELD
The combination of advanced analytics and a top-level accelerator network lets i2X startup clusters historically outperform every other major asset class at 30%+ p.a., and a zero risk of loss. i2X startup clusters also allow to design new investment vehicles that make Private Equity investments more liquid, with draw down periods as low as one quarter. With a current allocation capacity of $200m and a $1b target by 2016, i2X offers institutional clients meaningful volume and scalability.
A SYSTEMIC BOOST FOR VENTURE CAPITAL
Optimized i2X clusters not only show a strong investment performance, but also provide conventional VC firms with a new source of high quality deals. Seed stage startups in i2X clusters historically convert into Series A investments at a rate of 1:5, and already generated over 120 Series A startups. The average i2X Series A startup vastly outperforms the VC mean at over 30% IRR p.a.. Based on this past performance, a cluster of 4000 i2X startups would contribute over $20b additional deal volume to the US VC industry, and significantly boost its aggregate performance.
CAPTURING THE UPSIDE OF TECHNOLOGY INNOVATION
By combining the rapidly growing startup acceleration infrastructure with i2X Structured Seed Capital, we gain the ability to systematically convert large clusters of the smartest, most ambitious individuals into high yield startups on a broad scale. It closes the central gap in the economic innovation funnel, and seamlessly converts disruptive potential into disruptive growth.
i2X allows us to understand the logic of economic innovation with a new level of analytical precision. It is the first instrument that allows capital markets to invest directly into economic growth.
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