Turin, March 14, 2023

"Windfall" investing is a common problem in the venture capital fund world, as it can lead to imprudent resource management and excessive risk exposure. In particular, traditional venture capital funds with 10-year maturities tend to invest quickly and then monitor and add value to holdings over a 5-year period before divesting to generate a return and liquidating the fund. 

 

However, there are risks associated with this investment model. For example, if the investments all occur at a time of a bubble in the pre-money valuations of startups, overvaluation may occur, making divestment difficult.

In addition, if there is no opportune time to disinvest, the fund could get stuck and its investors could suffer losses.

 

To avoid these risks, Patrimon Cube has developed an innovative investment model that is based on a variable-capital holding company with no set maturity date. This means that we do not raise capital from our partners until there is a "hot" deal on the table and we do not accelerate an exit unless the conditions are right. In this way, we are able to identify the best Italian seed and post-seed startups and invest capital and expertise at the right time.

 

Our goal is to invest wisely, supporting startups in their growth and creating long-term value. We have no set deadline for divestment, which means that startups can be supported for a potentially infinite period of time. This allows us to make more careful investment decisions and create lasting and sustainable results for Italian startups and their investors.

 

In addition, our investment model allows us to maintain greater control over our holdings, which enables us to work more closely with startups and create added value through our support and expertise.

 

Ultimately, "windfall" investing is a common problem in the world of venture capital funds, but Patrimon Cube has developed an innovative and sustainable investment model that allows us to invest wisely and create long-term value for Italian startups and their investors.