Deep Tech

Ventures tackling the hardest tech problems

The Fund's Investment Thesis

The Deep Tech Fund offers an opportunity to invest in a venture portfolio of ~20-30 diverse companies tackling the toughest and potentially most lucrative tech challenges. The events of 2020 have underscored the critical importance of committing to and investing in science and rational thought for the well-being of society and the planet.

AVG is in an excellent position to identify, access, and create a portfolio of such venture investments. With alumni connections to some of the country’s top universities—as well as established accelerators, incubators, and venture firms—we can draw on a powerful network. Besides leveraging that community to source new opportunities, we can also invest in follow-on rounds of some of the ~450 companies in our existing portfolio.

Here’s why AVG thinks Deep Tech is a compelling focus for investment. 

  • Sector Opportunity. Tech has been a key focus of venture investing for years. Software, pharma, and biotech have been the most active sectors in venture for most of the past decade.1 And in the past five years, deep tech companies raised more rounds than other tech companies.2
  • Lower Capital Requirements. New technologies such as machine learning, quantum computing, and genetic sequencing are making it cheaper and faster for deep tech companies to innovate and bring disruptive new technologies to market.2
  • Profound Impact. Deep tech ventures are tackling the world’s greatest challenges and opportunities, with many initiatives having the potential to make a major impact.
  • Investment Potential. Innovative solutions to major technical and scientific challenges can yield great societal and investor benefits. One in five unicorns is in a deep tech company, with ~100 unicorns altogether.2
  • AVG in This Environment. Many traditional venture firms are now preoccupied with triaging portfolios and intense company management. As a co-investor who has always been nimble and entrepreneurial, AVG can focus solely on identifying the best opportunities. And as veterans of past downturns, we know that adaptable companies survive and even thrive in environments like this, while pricing and terms can become more reasonable.

Footnotes:
1 https://pitchbook.com/news/articles/18-charts-to-illustrate-us-vc-in-2018
2 sosv.com/deeptechtrends/

The AVG Syndicate

 

Syndications are opportunities to invest in single asset funds that give you more exposure to a specific company you may be excited about and in which one or more of our AVG Funds will also be investing.

 

How it works:

  • Investors can opt into Syndication as they wish.
  • Opportunities are sourced by our 40+ full-time investment professionals and our Office of Investments.
  • All opportunities have passed our diligence process and are being invested in by one or more of our funds.
  • Minimums are typically $25K per opportunity, or $10K for Venture Club members.
  • Typically, only about 5-10% of our investments are offered to our Syndicate - normally when we are able to acquire a larger investment allocation.

RECENT DEAL

Rigetti is a full-stack quantum computing start-up. It focuses on designing and manufacturing superconducting quantum integrated circuits, building software to enable quantum computing, and integrating its systems into a cloud infrastructure.

Co-investors include Andreessen Horowitz, Data Collective, and Y Combinator.

 

RECENT DEAL

Tembo Health provides a telemedicine platform connecting nursing home residents with specialized care providers through an intuitive video chat platform. This enables patients to access convenient, high-value specialty medical care at a safe distance.

Co-investors include Bloomberg Beta Founder and General Partner Karen Klein.

Open Now Through September 30, 2020

This fund will invest in ventures that are focusing on valuable deep tech solutions. Likely target sectors include AI/machine learning, blockchain/distributed ledger, robotics, VR/AR/MR, genomics, advanced materials, longevity, and others.

  • Promising deals sourced, vetted, and sponsored by one of our Alumni Fund investment teams
  • Our Office of Investing will determine if the deal meets our Deep Tech Fund lens
  • Pursuing proprietary, difference-making innovations that create business moats
  • Backed by established venture investors with deep experience in the sector and the expertise to validate the science/tech
  • Diversified portfolio across stage, sector, geography, and lead investor to help mitigate risk

I'm interested in the AVG Deep Tech Fund

How It Works

Data-driven and process-based investors

AVG Deal Sourcing and Diligence

  • ~50 investment professionals sourcing deals
  • Data-rich and process-based diligence and decision making with rigorous deal scoring
  • Co-invest alongside established lead venture investors

AVG Investment Process

  • Every deal sourced by one of our Alumni Funds is screened to determine if it fits within the Deep Tech Fund investment mandate.
  • AVG’s centralized investment team, led by our CIO and Office of Investing, selects investments from the potential deals to optimize diversification by stage, sector, geography, and lead investor.
  • The portfolio will be constructed over a period of ~12-18 months and represent a mix of deals sourced and sponsored by our Alumni Funds.

Smart, Simple Venture Investing

Open to All Accredited Investors

Smart

  • Portfolio consists of ~20-30 companies, diversified by stage, sector, geography, and lead investor within the investment mandate
  • Venture portfolio professionally managed by our experienced investment professionals
  • Co-invest alongside established lead venture investors

Simple

  • $25K minimum investment; $5M maximum investment
  • Online signing process takes just minutes
  • White-glove support from our Investor Relations team

Deep Tech Fund Example Deals

Here are deals from AVG current portfolio companies that exemplify the types of deals this fund would consider.

For sample purposes only.

Our Secret Sauce

Our 550k+ subscribers and community members

550k

COMMUNITY

550k subscribers and community members help source deals, evaluate, and assist portfolio companies

#3

ONE OF THE MOST ACTIVE VC FIRMS

AVG was recognized by PitchBook as the third most active VC firm in the U.S. in 2019.

521

PORTFOLIO COMPANIES

Invest in deals most individuals never know about or get access to.

AVG regularly hosts webinars (~1 per week) on a variety of topics that are designed to appeal to both new and seasoned venture investors.