Don't get the umbrella

We are poised for an enormous wealth waterfall, and it is not life insurance or intergenerational wealth. It is wealth that is flowing from corporations to younger tech companies that are opening new avenues to live and work. Don't get the umbrella, get into the waterfall.

Why invest now to harvest in 4-5 years

In a nutshell, my general sentiment is that this is a very interesting time to invest.?Investors in US-based, early-stage tech companies could experience a massive wealth creation.?Two verticals in particular, life sciences and climate, stand out as a result of a unique confluence of three factors: corporations eager to acquire younger tech companies; tech companies with sound business principles and reasonable valuations; and a general sentiment of optimism.?

Money to deploy

Cash-rich corporations must deploy capital to growth through acquisitions, compensating for a drop in earnings due to patent expiration and distractions to in-house innovations driven by their need to adjust to an epidemic, changing work conditions, high cost of capital, and labor inefficiencies. Life science (including pharma) and energy companies have accumulated an enormous amount of capital that must be deployed for growth. That growth will come from acquisitions of younger companies that have not had the challenges of corporations and are fueling innovation in so many ways! Corporations will seek to acquire companies for their growth or to reduce competitor’s growth.

Innovation to spread

These younger companies are now raising a series A or B and are poised to be in an ideal situation for acquisitions in 3-4 years. They have adjusted to Covid-related challenges, hybrid work environments, high cost of capital, and the use of AI. They have also adjusted to terms that are investors’ favorable yet healthy for founders and executive teams. Currently these companies are extending favorable terms to existing investors whilst they continue to negotiate with VCs that are slowly but surely de-freezing their coffers.??Investors who have supported the companies through these difficult years will benefit greatly.

why USA?

Last, a vanishing fear of recession and hyperinflation, and an increase in political instability in some parts of the world, make USA an ideal market for such acquisitions to happen.?It is a byproduct of a horrible tragedy of violence. Many companies are moving or have moved to USA. My personal opinion is that having acquisitions in the USA is more beneficial to shareholders. Coming from overseas, my views on exits have changed. To elaborate, if a company is going to be sold for 2, 3 or 15x more in the USA as opposed to its country of origin, then the founders and executives (or overseas investors) will bring at least some of those funds locally to continue fueling innovation. Additionally, most US-based companies already have a global workforce, benefiting local economies in ways never possible before. Smart LPs are recognizing the value of investing through small to medium VCs which traditionally provide better returns.

Why us

Without knowing how all of these conditions will impact the markets, we set up to create the Wealthing VC Fund as a spin off of the Wealthing VC Club. The FUND is a growth fund dedicated to investing in life sciences and climate at the inflection point of exponential growth in value.?With preferential access to highly vetted deals, it has been seeding entry into extraordinary companies with high probabilities of being acquired in 4-5 years. Seen as strategic investor, we distribute risk by filling rounds, not leading, in a larger number of companies. The FUND spins off the CLUB, an investors club founded in 2020.

This is not an experiment

Even in a risky industry, this is not an experiment. The CLUB reviews hundreds of deals annually and invests in approximately 1.8%. The FUND handpicks companies that meet our criteria for synergy, value increase and exit timeline. We have the track record, the pipeline, the team and the process. We have already a line on their cap table and we are able to execute.?

It's been raining in California, seeds are planted, harvesting is coming soon.