Tekcapital, the technology-focused university investment firm, provided an overview of its strategy for raising capital through IPOs as “public venture capital” to complement the search for business opportunities for its portfolio companies.
Tekcapital successfully floated AIM-listed Belluscura and recently Innovative Eyewear on NASDAQ, proving their ability to raise capital, despite unfavorable market conditions.
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Each of Tekcapital’s portfolio companies is the product of intensive academic technology assessment by a network of scientific advisors monitoring more than 250 universities.
Tekcapital has selected technologies that have the potential to help a wide range of people and established businesses with world-class management. Tekcapital’s technologies include autonomous vehicles, smart glasses, food technologies and health technologies.
The investment firm believes that each of its companies has the potential to become a billion-dollar company and Tekcapital has the advantage of being closely involved in the early stages of its portfolio companies.
In an environment characterized by companies that stay private longer, the Tekcapital team has a clear strategy to bring companies to market, not only to raise growth capital, but also to enhance business opportunities.
“Capitalizing on a moat of intellectual property coupled with rapidly developing market traction is a strong case for exploring a public venture capital trajectory to solidify a first-mover advantage,” says Dr. Clifford Gross, CEO of Tekcapital.
This has been demonstrated by Innovative Eyewear’s partnership with global lifestyle brand Nautica. Nautica will license Innovative Eyewear’s Lucyd smart eyewear technology in a collection using Bluetooth technology.
Such deals might have been possible if the company was private, but being a publicly traded company increases the visibility of the deal and will play a role in future distribution deals.
A public listing will also help attract talent to TEK’s portfolio companies. Innovative Eyewear has recruited key sales and marketing executives since its IPO and signals its intention to generate rapid growth.
Holding Company Transparency
Pursuing a public listing also produces great levels of transparency for investors. Tekcapital investors have a clearer view of the progress of their portfolio companies than those operating similar technologies privately.
By making this level of transparency possible earlier in a company’s life cycle, one gets a solid picture of the company’s growth trajectory and will provide strong comparables as the company grows. .
Belluscura’s progress was evident in a 34% increase in revenue in the first half of this year. Investors may have been hoping for an uptick in sales of Belluscura’s portable oxygen units, but growth has been robust and the numbers were available for the market to scrutinize.
Tekcapital lists early-stage companies that will face the same pressures as a private company, but with the advantage of being able to attract a wider investor base as their portfolio companies grow.
Upcoming Tekcaptial IPOs
Recent interviews with Dr. Clifford Gross hinted at a potential MicroSalt IPO in the coming months. This particular IPO will be highly anticipated following the plethora of trading updates from MircoSalt.
The CEO of Tekcapital said that an IPO of MicroSalt could take place as early as Q1 2023, which would be further validation of their strategy.