The prisoner’s dilemma is a classic thought experiment that delves into the dynamics of cooperation and competition for mutual benefit.
How does venture capital fit into this scenario? A group of Boston investors is challenging the norm.
This week, a collaborative group called Venx (or ven^x) was launched by five venture capitalists and the head of a real estate consultancy, focusing on deep tech investments. These investors come from Anzu Partners, Hitachi Ventures, Myriad Venture Partners, and SkyRiver Ventures, making individual investment decisions but collaborating under the Venx umbrella.
“The necessity of partnerships in deep tech investments and the value of working together was evident,” Hyuk-Jeen Suh shared with TechCrunch.
Suh, a general partner at SkyRiver, drew inspiration from successful startup accelerators like Greentown Labs, recognizing the power of shared resources and collaboration among founders in the Boston area. This belief in teamwork fuelled the formation of Venx.
Previous to Venx, the traditional venture capital landscape lacked a unified approach. Sand Hill Road in Silicon Valley served as a hub for investments but lacked true collaboration among investors. Venx’s diverse group of firms covering various investment stages and deep tech sectors set it apart and enabled its formation.
Deep tech startups inherently benefit from cooperative efforts due to their complex challenges, resource-intensive requirements, and innovative solutions that thrive on diverse perspectives.
Venx operates similarly to a syndicate but with a more formal structure and shared workspace, facilitating deeper interactions and collaboration among members. The group is open to new members primarily focusing on direct investments in startups.
With the potential to expand to include more partners, funds, and a shared investment pool, Venx’s collaborative model presents a unique experiment in the venture capital realm.
