Open from July 1 - August 15, 2021
The Fund Focus & 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. Recent events have underscored the critical importance of science and rational thought for the well-being of society and the planet.
The definition of deep tech varies, but most sources agree that such technologies are
- Science-based or R&D based
- Unique, proprietary, and difficult to replicate
- Offer major advantages over current technologies
- Have the potential to make big, disruptive impacts on major global problems.
Alumni Ventures 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 ~600 companies in our existing portfolio.
Why This Is a Compelling Sector
- Sector Activity. 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. And in the past five years, deep tech companies raised more rounds than other tech companies. And there are a number of firms interested in participating: in 2019, there were 200+ Deep Tech venture funds in North America, raising and/or investing $31B.
- 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.
- 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. Thirty years ago, technology was disrupting just a few industries; today every major sector is facing radical technological disruption.
- Investment Potential. Innovative solutions to major technical and scientific challenges can yield great societal and investor benefits. At least one in five unicorns is in a deep tech company.
Special Benefit: The Deep Tech Fund Venture Club & Syndications
Every investor in the AVG Deep Tech Fund will automatically become a member of our Deep Tech Venture Club. The Club offers the following benefits:
- Optional Syndication venture investment opportunities. Increase your commitment in an investment in your Deep Tech Fund that you particularly like. Syndication investment minimums are $10K minimum per deal, vs. $25K outside the Club. All deals have been rigorously vetted and scored by AVG.
- Ability to score deals and share your opinions with Club members if you wish
- Educational opportunities, invitations to virtual events, and the ability to personally support portfolio companies
- Updates on your fund and portfolio
- Example of deep tech Syndications we’ve run: SHINE Medical, Axiom, Light Field Lab, and Rigetti
| SAMPLE SYNDICATION
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. |
| SAMPLE SYNDICATION
SHINE produces radioisotopes to diagnose and treat heart disease and cancer using a safer, cleaner, and more affordable means than nuclear reactors. Shine can supply about 1/3 of the global demand for a key medical isotope currently supplied from overseas. Co-investors include Daimler, Sony, Fraser McCombs, Intel Capital, SAIC Technologies. |
This fund will invest in ventures that are focusing on deep tech solutions. Likely target sectors include AI/machine learning, computing, blockchain/distributed ledger, robotics, VR/AR/MR, genomics, advanced materials, longevity, and others.
Here’s how we’ll assemble the portfolio:
- Our actively managed teams will source, vet, and sponsor promising deals that they are investing in for their own funds.
- We will consider those investments for the Deep Tech Fund portfolio that we believe are proprietary, difference-making innovations creating business moats.
- Our Office of Investing will select deals that meet the fund mandate and help diversify the portfolio across stage, sector, and lead investor.
I'm interested in the Deep Tech Fund.
How It Works
Data-driven and process-based investors
AVG Deal Sourcing and Diligence
- ~50 investment professionals sourcing deals, working from five venture hubs and tapping alumni connections
- Data-rich and process-driven diligence and decision making with rigorous deal scoring
- Co-investing with other established lead venture investors who are experienced in the sector and can help validate the science/tech
Portfolio Construction
- Every deal sourced by our actively managed funds is screened for fit with the Deep Tech Fund mandate
- Our Office of Investing also seeks to diversify by stage, sector, geography, and lead investor
- The portfolio is constructed over ~12-18 months
- We keep reserves of 20% for follow-on investing
Smart, Simple Venture Investing
Open to All Accredited Investors
Smart
- Portfolio consists of ~20-30 companies within the investment mandate, diversified by stage, sector, geography, and lead investor
- Co-invest alongside other established lead venture investors with sector expertise
- Venture portfolio professionally managed by our experienced investment professionals
Simple
- $25K minimum investment; $5M maximum investment
- Online signing process typically takes just minutes
- White-glove support from our Investor Relations team
To see additional risk factors and investment considerations, visit avg-funds.com/Disclosures
Deep Tech Fund Example Deals
Here are current portfolio companies in the Deep Tech Fund.*
*For sample purposes only.
The Alumni Ventures Focused Fund Nomination Committee
Click here to see our Focused Fund Nomination Committee, who determine if deals invested in and nominated by our various Alumni Venture funds are a fit for the Deep Tech Fund. In evaluating deals, the Committee considers fit with the fund thesis and portfolio diversity across sector, stage, and geography.
Our Secret Sauce
Our 550k+ subscribers and community members
550k
COMMUNITY
550k subscribers and community members help source deals, evaluate, and assist portfolio companies
#1
THE MOST ACTIVE VC FIRM IN THE US
Alumni Ventures was recognized by Pitchbook as the most active VC firm in the U.S. in 2020.
~600
PORTFOLIO COMPANIES
Invest in deals most individuals never know about or get access to.