Managing Frontier Risk with Non-Dilutive Capital
How Scout Defines Frontier Technology and Manages Risk
How Scout Defines Frontier Technology and Manages Risk
How Scout is bridging the gap between web2 and web3 technology as builders + investors in the space.
Brian Litvack, the founder of LeagueApps and one of our portfolio companies, reflects on his first investment check from Scout Ventures.
In a time where innovation is at its peak and business has become vastly globalized, how can we guarantee the investment in America’s greatest minds is in deep tech? With the concern of a decline in American Dynamism on the horizon, Bradley Harrison shares five ways non-dilutive funding can solve this massive challenge.
Over the past two years, we’ve seen our world change in unprecedented ways. From COVID-19 to the ongoing war in Ukraine, the global landscape has been altered from what we knew in 2019. Military spending has reached unmatched levels, the need to spur innovation to remain competitive against China is unwavering, and the global supply chain has proven fragile.
The following is an analysis behind why Mappy is a strong seed stage investment. Mappy has created geospatial software development kits for businesses to build rich mapping experiences for consumers while doubling as a mechanism to harness valuable utilization data. Mappy’s business model is a special case of the enterprise Software Development Kit (SDK) subscription model because of the two-birds-one-stone effect from consumer maps that yield valuable business data as a side effect of use. This special case creates several different revenue streams from the same tech.
At Scout Ventures, we focus on deep tech with deep reach, built by founders with deep expertise and experience. To date, we have made 14 investments from our third fund, in areas ranging from AI and data science to cybersecurity, robotics, advanced materials, space, and quantum technology. Each investment reflects a thoughtful approach to market discovery and associated due diligence and supports our goal of making the world a safer, more accessible, and more sustainable place. In this article, we discuss why we invested in Anametric and Agnostiq, two incredibly promising quantum tech companies.
As 2021 nears its close, our team at Scout wants to take a moment to recognize the steps we’ve made to expand our exclusive networks, grow our team, and execute our mission of making the world a better, safer place. This year has been full of benchmarks that will help us empower veteran entrepreneurs and ensure the safety and security of all Americans.
It was a pleasure to attend the Fortune Brainstorm tech conference. After having the privilege of talking with a several technology leaders and sitting in on close to a dozen insightful sessions, I identified three themes. We are in the age of individualism and expressive consumerism. Technical talent has never been more imperative. Deradicalization of frontier tech.
The hardest part of venture investing is passing on great entrepreneurs. This becomes even harder when the entrepreneurs come from a network that you really care about. For Scout, these are entrepreneurs with roots in the military, intelligence community and National Labs. More specifically, graduates from any of the United States Service Academies (USMA, USNA, USAFA, USMMA, USCGA).
Scout's new site is largely a representation of our intent to stay on the stable frontier of technology. Jointly, the opportunity to build a new site in-house allowed us to flex our muscles as entrepreneurs and technologists. As a starting point, we thought about what we needed out of a site framework/CMS. Among the principal needs were: maintainability, robustness, clean (responsive) aesthetic, and efficiency of construction. With these in mind, we found Webflow to be the best option. I think it's approachable for the average person, but has plenty of flexibility for power users. Chiefly, Webflow is built around a Content Management System that seamlessly integrates with the UI builder. It makes creating, displaying, and maintaining collections like portfolio companies and blog posts super simple.
We are incredibly excited to announce our partnership with Christopher Stott, Carol Goldstein, and the team at Lonestar. We believe that lunar exploration is the next whitespace in the New Space Economy, and that data security and storage will be a necessary part of leading the new generation of lunar exploration.. Enter Lonestar.
Why invest in software-as-a-service (SaaS) companies—companies that provide access to software on a subscription basis? For starters, SaaS companies have a built-in competitive advantage. They have little need for physical inventory, resulting in lower overhead costs. Companies with low overhead and little to no burden of warehousing don't require a lot of resources or infrastructure to grow rapidly. This gives SaaS companies a unique ability to scale quickly, making them potential high growth opportunities.
Investors need to understand the basics of the companies and industries they invest in – e.g., revenues and profits over time; similar companies and their track record; size of the market; management experience; and expected return on investment. Is there an eventual exit from the investment and a chance to see a return? Investors use this information to decide how much they like a company and how valuable a deal is to them.
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