PIPE has many benefits for academics, universities, investors, partners and all stakeholders a few of which are listed here:
Reduced/Fixed cost of commercialisation – instead of universities having a variable cost on 3rd party validation of projects, PIPE fixes this cost across four Phases whilst focusing on the potential spin-out opportunity for funding.
Opportunity identification – STEaM (Science, Technology, Engineering, Manufacturing) PIPE and associated due diligence processes/methods give visibility to high growth/high return investments that would otherwise not be in the public domain.
Due Diligence – that is exhaustive, constructive, open and honest to reduce and significantly de-risk investments.
On-going management – The PIPE LLC maintain a seat on EVERY invested company board via our associates to maintain a focus on agreed business plan KPI’s and to drive performance
Immutability of the system – this means absolute, hard coded management of all stakeholder positions from the point of investment through to liquidity and exit. No unexpected dilution, no dispute on dividends and liquidity and clear action on exit opportunities.
De-centralisation – to remove currency, legislative and geographic barriers to investment in unlisted (pre-IPO) companies that have completed due diligence.
Increased liquidity & access to/return of invested capital – PIPE Investors will be free to trade on the PIPE and open exchanges and markets as they mature, thus taking advantage of the net asset value (NAV) of the assets under management (AUM) and increased value across all investments to provide liquidity.
Creating a new breed of Angel Investors – the PIPE gives investors a significant share (min > 25%) in the equity of up to 500 early stage, high growth opportunities globally, underpinned by rigorous, open, honest and immutable due diligence and incubation.
Portfolio diversification – thus reducing the principle risk for investors.
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