WAVE Equity Partners seeks to generate extraordinary returns using a proprietary investment model called spinoff investing that commercializes breakthrough foundation technologies in multiple global markets. The following examples are an illustrative, not exhaustive, list of targeted sectors:
Conservation & Efficiency – Insulation materials, Super-Capacitors, Efficient motors and drives, Process efficiency solutions
- Alternative Energy – Harvesting waste heat, Clean hydrocarbon plasma solutions, Nuclear reprocessing
- Water, Natural Resources – Desalination, Recycling of waste water, Biodegradable plastics, Eco-friendly concrete
- Environmental Security Solutions – Waste-to-energy, MEMS sensors, Food security, Pollution mitigation
WAVE exploits a market arbitrage opportunity in the Cleantech sector. Though Cleantech solutions have global applicability, they are restrained by capital and execution limitations from going beyond their home markets.
- WAVE Equity Partners will focus on financially and environmentally sustainable Cleantech investments that offer the opportunity for attractive returns. Market estimates suggest that over $10 trillion will be invested in Cleantech infrastructure over the next twenty years. WAVE welcomes partnerships with startup companies that share the following characteristics:
- Early stage companies that have achieved technology breakthroughs that are ripe for commercialization;
- They have generated a small amounts of commercial revenue or no revenue;
- They have not already raised a significant amount of equity from other institutional investors;
- They have secured significant IP rights to lock their technology gains;
- Their core technologies can be profitably applied to multiple Cleantech markets globally;
- These markets are experiencing a strong demand pull.WAVE can deploy up to $75M to commercialize one core technology in multiple markets.
- Cleantech is a theme that underlies several large global industries that exhibit accelerating demand for innovation and investment. Several Cleantech industries – such as energy, water, and waste management – characteristically enjoy inelastic demand, limited competition and long-term price growth. It is our belief that the solutions to our most pressing energy and environment problems can only be solved by new technological breakthroughs. As a result, the Cleantech industry represents an attractive area for private equity investing.
A combination of market forces are propelling demand for sustainable solutions, creating very favorable conditions for innovative startups in the Cleantech sector.
While we do come across business models whose economics are enhanced by favorable regulatory regimes, we favor those businesses that offer compelling value proposition to the markets without relying on the economic crutch afforded by government regulations.
Wave Equity Partners
WAVE is a private equity firm that takes equity stakes in those foundation technologies that have the potential to transform multiple industrial and/or global markets. In order to unlock the innovation’s full value and achieve greatest outcomes for the entrepreneurs and investors, WAVE’s investment team employs a unique ‘spinoff strategy.’
Initially, we nurture and scale the foundation technology in a home market. Once scaled, we create high conviction investment opportunities by deploying larger capital to build lower risk spinoff companies across disparate global markets. In contrast to the traditional approaches that restrict a company operation to a single market and to a single exit, WAVE proves a technology once and monetizes it again and again.
Operating out of Boston, the team seeks companies that develop innovative solutions to improve industrial and energy efficiency, reduce waste and emissions, harness renewable energy, and more efficiently use natural resources. We will typically lead Series A equity investments in companies that are scaling after initial proof of market, or are applying proven solutions to previously untapped markets. For each foundation company, WAVE may reserve $40 million or more to fund the growth of the company and its spinoff entities.
We work as partners with the management of our portfolio companies and remain deeply involved in the operations of our businesses. In this way, we help build globally competitive franchises that accelerate economic and employment growth. We invite entrepreneurs who share our commitment to ethical investing, sustainable value creation, and innovation leadership to contact us.