Venture Pioneering
Exage Ventures is the leading European venture pioneer,
a sweet spot between a Technology Transfer Company, a Venture Manager, and a Venture Builder.
Exage Ventures employs a distinctive three-step process that aligns the interests of founders, academia, and investors while ensuring the development of robust and successful ventures in the health industry. This approach is innovative, offering a unique model that benefits all stakeholders involved.
Step 1: Equity Control and Return
Initially, Exage Ventures takes a 51% stake in the startup, maintaining control for three years. This strategy allows for decisive and efficient management during the critical early stages of the venture.
Importantly, after this period, Exage returns all equity to the founders, non-executive co-founders, and academia.
This ensures that these key stakeholders retain full control and ownership of their venture in the long run, without any dilution of their shares. This approach provides the founders and academic partners with the confidence that they will regain complete ownership, fostering a trusting and collaborative relationship.
Step 2: Startup Structuring and Venture Creation
The startup is structured as a fully-fledged SMB, leveraging Exage Ventures' extensive network and expertise in managing it as a holding company. A notable aspect of this stage is the creation of 1 to 3 new ventures, branching out from the original startup.
Exage Ventures retains a 50% stake in these ventures or a 10% equity with an additional 10% success fee on raised investments.
This model allows for diversification and exploration of new industries, increasing the potential for innovation and success.
Step 3: Performance-based Compensation
Exage Ventures’ compensation model is directly tied to the success of the ventures it launches. The team is paid on a day-to-day basis, with earnings dependent on the performance of these ventures.
This aligns Exage Ventures’ interests with the success of the startups, ensuring a commitment to creating viable and profitable businesses.
This model also provides:
Academia with a higher likelihood of owning a valuable holding and retaining a license on their patents.
Founders benefit from having a well-structured company built without risking their careers, along with additional revenue streams from subsidiary ventures.
Venture capitalists are presented with opportunities to invest in validated and structurally sound businesses.
Exage Ventures' approach is meticulously designed to maximize success for all parties involved.
By taking initial control and then returning equity, structuring startups for growth and diversification, and tying compensation to performance, Exage Ventures ensures that founders, academia, and investors are aligned toward the common goal of creating successful, sustainable ventures in the life science industry. This model not only fosters innovation and growth but also instills confidence in all stakeholders, making Exage Ventures a unique and valuable partner in the sector.