Origination from Leading Incubators
Lux Eco Securities sources candidate assets at leading global incubators, invention centers and patent bureaus. We select only post-start-up stage income-producing assets, with accelerating value growth and still significant upside value potential that are about to make a major breakthrough in global markets. It is evident that we do not select assets in reseach and development stage. The synergetic relationship with these incubators is of significant importance. The incubators strenght is the selection and development of new assets and post-start-up funding hereof while our strength is the commercial roll-out hereof once these assets are ready to fo to market.
Establish Strategic Partnerships
When targeting green innovative assets, Lux Eco Securities commissions world leading scientific organizations like Energy Reserach Center of the Netherlands, the Organization of Applied Scientific Research, Dutch National Hydrogen Platform or leading universities to undertake thorough due diligence, testing and if so required certification. These organization provides us also with expert opinion about the economic, technical and commercial viability of the assets as well as other criteria including but not limited to market acceptance, regulatory and political roadblocks, product exclusivity, organizational readiness, etc. We also engage with special reputable patentbureaus like Sisvel Spa and patent lawfirms to assess the strength of existing patents or to file new or additional patent applications or assess the possible contestability of these patents.
Shortest Time to Market
Upon successful outcome of the due diligence, Lux Eco Securities instantly engages with leading multinationals to explore potential synergies for development, manufacturing, distribution and sales. It is evident that such multinationals bring exceptional experience, know-how and critical resources to the table that will substantially reduce the time-to-market. When confirmed we proceed with establishing strategic partnerships or industry or geographic alliances, securing licensing agreements to ensure a fast track commercialization and roll-out in global markets. Often these multinationals desire to obtain an equity stake in the business. Our credo is here "better have a fair share in the ocean than full ownershp of a still dry lake".
Lowest Cost to Market
The strategic partnerships and alliances with multinationals often significantly reduce the need for capital to build up a global presence. As these multinationals already have the experience, the capital, a state-of-the-art industrial infrastructure and an existing global distribution and sales network, it is relatively easy and cheap for them to rapidly integrate the new assets in the existing global business operations. It is evident that besides the significant cost savings also the risks of trial and error, normally involved when enterprises pursue their own, self-managed growth strategy.
Shortest Time to Revenue
Its common practise for Start-Ups and SME's to solely rely on investor' s funding, even when they are ready to go to market. However most enterprises appear to be unprepared or unable to make the transition from research and development to sales and distribution and make the common mistake to build up these capabilities from scratch. The consuequence is that valuable time and resources are wasted, the desired breakthrough fails and moreover the loss of critical important revenues. To our experience the transition requires often new leadership. Our support foresees in building global strategic partnerships to ensure the asset start to produce cash flows a fast as possible.
Shortest Time to Return on Investment
As Start-Ups and SME's are largely founded and lead by its specialist inventors, it is a very common that deadlines for market launch continuously are postponed. Such delays occur when patents haven' been filed yet or when the protype has to be prepared for mass scale manufacturing, or when special machinery has to be developed or simply because product certifications in certain countries take relatively a long time. Another common reason is that inventors often "won't let go" and strive for further ongoing perfectioning. In our approach we strictly seggregate the ready-to-market applications from those that require further research and development to ensure these applications are launched as soon as possible safeguarding an as early return on investment for investors as possible. We strive to ultimately fund the add-on research and development from th cash flows generated by the first-to-market applications.
Sustainable Accelerate Growth
The key to the success to make a breakthrough in the global market place is acceleration of profitable growth and achieve economies of scale. As the business volumes increase numerous opportunties arise to achieve higher levels of efficiency. Besides fast-tracking the sales and distribution partnerships with multinationals, geographical or global, we actively explore also the opportunities for outsourcing production, distribution and "white-labeling" . Such strategies have proven to be of significant importance for sustainable profitable growth.
High Value Exit
As investors we do not strive to retain long term ownership but seek for a high value exit on our investment. Already from the moment we conduct due diligence on the targeted assets, we prepare for a high value exit. It is evident that the multionationals with whom we have established strategic partnerships are the primary candiates to acquire the assets. Throughout the investment period we also engage with leading private equity and venture capital firms and other institutional investors. Alternatively we mobilize our task force to prepare for a full or staged public offering. The objective isnot only to secure the highest value exit but to ensure the continuity and further global roll-out of the asset in accordance with our mission.
