Notes from the Technology Frontier - August 2024
Welcome to Notes from the Technology Frontier!
Future Frontier Capital (FFC) is thrilled to share our latest update.
We continue to make inroads with LPs from across the spectrum and have recently engaged with several promising startups in the frontier/deep tech space.
Latest Deal Flow
Rapid, accurate cell and gene therapy testing. Reduce time to test by 100X. Founding team out of Stanford and UC Berkeley.
Zero-carbon aircraft propulsion. Connecting carbon-neutral power sources with existing jet turbine architecture. Highly experienced technical & BD founders.
Game-changing muscle regeneration platform. UC Berkeley based bioengineering technology with preclinical data aimed at restoring muscles in people suffering from volumetric muscle loss.
Other News
Judged and attended several startup competitions at UC Berkeley sponsored events as HAAS MBA, Berkeley engineering and Berkeley law students wrapped up the 2024 school year. We met several visionary founders pioneering cutting edge, frontier technologies.
We continue to engage with a variety of LPs including high net-worth individuals, family offices, fund-of-funds and institutions. We are receiving very encouraging feedback across the LP spectrum regarding the “uniqueness and differentiation” of our experience and strategy, and our “impressive organizational skills and rigor” for a first time, institutional VC fund.
Future Technology Trends - Critical Minerals Extraction
SiTration developed an innovative filtration system using etched silicon wafers to extract valuable minerals from mining waste and refining processes.
Their durable semiconductor filters can last over 3 years and enable efficient recovery of critical metals like lithium, cobalt and nickel with up to 95% less chemical usage. By leveraging electric currents through the silicon, SiTration's technology can effectively target and harvest a wide range of minerals from tailings ponds, recycled batteries, and refining streams.
The founders pivoted from using their silicon wafers for desalination to extracting critical minerals from mining tailing ponds. SiTration raised an $11.8M seed round earlier this month led by 2150.
Future Technology Trends - Reactivated Cement
Researchers at University of Cambridge developed a novel process that simultaneously recycles old concrete and steel.
By introducing recycled concrete into steel production furnaces, the process purifies the iron while also generating a byproduct called "reactivated cement."
If powered by renewable energy sources, this dual recycling method could potentially produce cement and steel with zero carbon emissions.
There are several other startups including, Furno Materials, Brimstone, and Biozeroc that are attempting to disrupt the $300 billion dollar + cement industry.
This is a much needed solution in the fight to lower CO2 emissions. According to Vaclav Smil, cement production accounts for more than 4 Billion metric tons of CO2 per year.
Future Technology Trends - AI Compute with AMD
TensorWave is ushering in the Next Wave of AI Compute, leveraging the AMD MI300X accelerator at scale. TensorWave is optimized for large-scale enterprises and platforms with LLM workloads that leverage PyTorch, including training and fine-tuning.
In December 2023, TensorWave announced a partnership with AMD to become one of the first specialized cloud providers delivering massive scale using AMD GPUs.
TensorWave offers an AI compute solution that outperforms Coreweave's Nvidia H100-based service, boasting a 2.4x faster performance, 1.6x higher memory bandwidth, 1.3x more streaming processors, and 2.4x increase in FP8 TFLOPS, all powered by AMD GPUs.
FFC: Redefining Deep Tech Venture Capital Through Data-Driven Insights
FFC’s Data Driven Approach to Deep Tech Investing
Our data-driven approach to evaluating frontier and deep tech startups, rooted in decades of intellectual property expertise, offers a distinct advantage in picking high-potential investments and mitigating technology risks. With over 20 years of experience, we've analyzed thousands of patents across hundreds of technology landscapes. We’ve helped dozens of companies build robust IP strategies, identify optimal acquisition targets, and make data driven decisions worth more than 5 billion dollars.
While our selection process begins with the founders, favoring hard workers with innovative mindsets open to change and big ideas that address real-world problems, our unique background allows us to go beyond traditional VC metrics. Our proprietary software analyzes patent landscapes, scientific literature, and technology trends to identify potential disruptors well positioned in high growth areas. Our approach is well-suited for early-stage deep tech investing.
Our methodology provides tangible benefits to the startups we invest in. We offer strategic guidance on IP strategy, helping companies build defensible moats and identify untapped market opportunities, ultimately accelerating their path to market dominance. Our differentiated expertise has led to a nearly 11X TVPI on our previous investments, with 75% of our portfolio companies successfully securing follow-on funding within 18 months.
Some may argue that patent analysis is too narrow a focus. However, our holistic approach combines IP insights with traditional VC metrics, providing a more comprehensive evaluation of a startup's potential. This unique lens for evaluating technology risks and opportunities allows us to add value to startups early on by helping them build defensible business models.
The fact that other VCs are interested in having us evaluate and invest in their deals reinforces our key differentiation in venture capital. By partnering with us, VCs and startups gain access to valuable insights, enhancing their chances of identifying the next generation of game-changing innovations.
We are excited to collaborate with other VCs and evaluate promising deals. Our approach not only helps identify potential outlier investment opportunities but also contributes to building a stronger, more innovative and collaborative technology ecosystem.
Filling Critical Knowledge Gaps: A Case Study in Deep Tech Due Diligence
Recently, a prospective LP asked us to analyze the competitive landscape for an early-stage biotech deal. Our patent analysis revealed several companies working on drugs targeting similar pathways, details both the investor and the startup's founder had overlooked.
This underscores a critical challenge in deep tech investing: with over 8,000 patents filed worldwide daily, even the most diligent founders struggle to maintain a comprehensive view of their competitive landscape. The biotech sector, with its rapid innovations and complex IP environment, exemplifies this challenge.
Our analysis not only prevented a potential blind spot in the investment decision but also highlighted two key differentiators of FFC:
Enhanced Deal Sourcing and Winner Selection: By identifying all players in a technology area, we are able to provide a comprehensive view of the competitive landscape. This approach allows us to uncover hidden gems and potential disruptors that traditional due diligence might miss.
Strategic Value Addition for Founders: We support early-stage frontier tech founders with crucial competitive intelligence, empowering them to navigate the complex field of IP strategy and market positioning. This support is essential in building and maintaining a robust competitive moat.
This case demonstrates the tangible value of our data-driven methodology. By filling these knowledge gaps, we not only mitigate investment risks but also position our portfolio companies for success in an increasingly competitive deep tech ecosystem.
Our ability to uncover these "unknown unknowns" sets us apart in the VC landscape, offering a level of insight that goes beyond traditional financial metrics and market analyses. For LPs and co-investors, this translates to more informed investment decisions and a higher probability of backing truly innovative, market-leading companies. By bridging critical knowledge gaps and empowering startups with actionable intelligence, FFC is not just investing in companies – we're cultivating the next generation of transformative technologies. With FFC, investors gain more than capital deployment; they secure a partner committed to navigating the frontiers of technology and unlocking unprecedented value.
Please reach out if you’d like to learn more.
Sincerely,
Matt & Mark
Echoes from the Edge
Jeff Parker - Jrifted
Milt Jackson - People Make the World Go Round