It is no secret that digital technology is changing the world. Few industries remain unaffected by developments of the past 20 years. The pace of innovation appears to be accelerating, which is great news for society, and a big opportunity for investors.
Today entrepreneurs bring their ideas to market more quickly, easily and cheaply than ever before. Some key underlying trends are:
- Cost Down: launching a new product takes 5-10% of the capital it did 10 years ago.
- Speed Up: entrepreneurs regularly deliver their first marketable products within months of company inception. More people are willing to adopt new technologies, and products iterate faster toward success.
- Opex not Capex: cloud computing and service innovation have largely converted fixed capital costs into variable operational spending. Investment risk can be aligned with operational performance more than ever.
- Robust and Scalable: technology-enabled businesses now enjoy development tools and processes that are faster, better, and stronger. They can focus on building and selling their products, and new systems scale naturally along with them.
- Global Distribution: app stores and online visibility give new products access to billions of potential customers almost immediately, almost at zero cost.
The sum of these trends is a rapidly growing number of capital-efficient exciting new companies that need expertise and capital to fulfil their potential.
In the technology world people often use the word ecosystem. It describes the fact that a wide range of knowledge, experience and contacts are needed to bring any new idea to life, to market, and to success.
ecosystem - a system, or a group of interconnected elements, formed
by the interaction of a community of organisms with their environment.
At Isomer Capital we know partnership is the only model for sustainable success. We operate as a network of networks to help all our partners prosper, bringing opportunities, capital, expertise, contacts and assistance to our GPs, LPs, and investee companies alike:
- Access to investments and segments of the economy many cannot reach.
- Expertise and Relationships in venture capital, a high performance but complex asset class.
- Scale to help big investors benefit from big ideas in their early stages, and to help small investors extend their reach.
- Diversification to spread risk across many assets and key dimensions such as sector, stage, geography, and vintage year.
- Infrastructure to execute on opportunities through the extensive work of market screening, due diligence, negotiation, legal, tax and ongoing monitoring.