— High Growth / High Risk Ventures—
Value of Innovation with Intellectual Property
What does High Growth mean?
Ventures with the intrinsic power to expand rapidely in terms of company value, with or without generating revenues.
They typically emerge at the frontier of innovation, shaping markets that are still in formation, redefining the boundaries of what is possible.
To unlock their potential, these ventures must evolve from a Bench-to-Market logic—where the idea is born—to a Market-to-Bench discipline, where market intelligence actively informs what is built next. This strategic transformation is essential to fulfil their promise and achieve adoption at scale.
The level of disruption they aspire to create can vary widely. Yet disruption, in itself, is no guarantee of value—if only it were that simple.
What does High Risk mean?
Ventures being considered a risky investment due to the uncertainty they face. High risk is not specific to innovative ventures.
Importantly, High Risk does not refer to R&D or market adoption challenges. It specifically refers to the financial risk: the standard deviation profile of the expected Internal Rate of Return (IRR) of the investment.
The hallmark of High Risk in innovative ventures is the highly uneven distribution of financial outcomes—often dramatically so—even among holders of securities within the same company.
This structural unevenness is intrinsic to high-risk innovative assets and represents a challenge of its own for all venture stakeholders.
In innovative High Growth / High Risk ventures,
even the sharpest minds walk a fine line.
Talent is forged and tested by three constraints:
Time, Capital, and People.
The path to success is both accelerated and obstructed by forces, internal and external, that emerge over time, often beyond the venture’s control.
What seems idea one day may falter the next, and vice versa.
The true question is: can the complementary forces of Entrepreneurs and Investors navigate uncertainty in concert ?
Venture Entrepreneurs
Entrepreneurs drawn to High Growth / High Risk ventures possess an unconventional relationship with risk, like pioneers at heart, they are willing to take bold bets and embark on journeys that defy the odds. Their profiles are diverse, with a notable presence of neurodivergent minds compared to the general population.
Venture entrepreneurs bring unique ways of processing information, ingenious adaptability, and relentless drive. Their skill set is exceptional for tackling audacious goals—ventures that, in many ways, resemble "moon missions".
Venture Investors
Investors drawn to High Growth / High Risk are captivated by the potential for outsized returns, often exceeding opportunities in other asset classes.
Yet the distribution of returns is far from conventional: in this space, IRRs are more log-normal than normal, with losses often irreversible.
Savvy investors constantly evaluate where their stake—and the company—sits along this distribution curve. Decisions are made not only on an individual asset basis but, perhaps even more critically, at the portfolio level. The high uncertainty and fluid dynamics of time and Resources until Exit demand both discipline and foresight.
What We Do, For Those Who Build and Fund
Key characteristics of the High Growth / High Risk environment,
Management must stay a step ahead
Continuous scanning of the horizon—market dynamics, emerging trends, and opportunities is vital in High Growth / High Risk. It forces innovation to be benchmarked (R&D, IP, value, partners), optionality to be created for the company and the shareholders, and vulnerabilities to be addressed before they can threaten long-term success.
Neuro + cultural diversity to solve problems
There is much to observe and much to solve, with great complexity. Communication must be precise, even when minimal. Diverse expertise, perspectives, and talents are essential for forming a robust team. In High Growth / High Risk ventures, the team extends beyond internal staff to include board members and external advisors, all contributing to the venture’s success.
Expectations are high, trust is limited
High Growth / High Risk Investors and companies thrive on uncertainty—but only within a shared framework agreed at the time of the investment. Each party enters with its own expectations, investors notably aiming for IRRs exceeding those of large-cap stocks, or private equity. Yet uncertainty is never fixed; it shifts, often unpredictably, challenging every participant.
Generating alignment is nothing trivial
Alignment is fleeting, appearing most clearly during deal execution—whether financing, R&D partnering, or exit agreements. Is it always "fair"? Sometimes. When not, it reflects unequal stakes, the point of despair of a participant. Motivation, however, is essential to performance on rugged terrain. Alignment in High Growth / High Risk ventures is not innate, it is achieved.
Track record or first-time drive? Both matter.
This environment gives a distinct edge to those having a track record: they are already vetted and can shortcut the learning curve. A robust network, strategically aligned to the venture’s needs, further amplifies this advantage.
First-timers bring unparallel drive and an unconstrained mindset—often contagious—fueling innovation and bold action.
Time is IRR. Time is also an adaptive challenge: what was true yesterday may no longer hold tomorrow.
Ultimately, each journey is unique. No one can fully train for or replicate the path ahead, making alpha notoriously hard to generate and replicate.
This is the vivid reality of High Growth / High Risk is.
Navigating High Growth / High Risk ventures demands clarity: maximizing insight, uncovering vulnerabilities, building optionality, and reinforcing governance. This is how true value is created.
We help focus on what matters — supporting decisions, alignment, and enabling capital to flow effectively.