Our Investment Philosophy, Strategy and Tactics

Two Seven Ventures’ investment philosophy is based our belief in inevitable trends. As CO2 emissions from fossil fuels increasingly perturb earth systems, and as human population doubles to 12 billion, with 80% of us migrating to cities, clean energy will be a necessity and not a luxury. Economic cycles and political shifts will accelerate or delay the transition to a low-carbon energy economy, but the trend will be steady. Big milestones, in our view, will mark the way:

    • Natural gas will become a preferred fuel for baseload power generation in North America and Europe
    • Solar PV will attain grid parity on a cost basis
    • Ultracapacitors will surpass chemical batteries in energy- and power-density
    • DC power networks will move from novelty to mainstream as a building energy-efficiency strategy
    • Algae will emerge as a viable biofuel feedstock
    • Lightweighting will become a leading strategy for increasing fuel efficiency in vehicles
    • LED technologies will dominate the lighting market
    • Thermoelectric power generation will find niche applications and be cost-competitive with solar PV

Two Seven Ventures will make strategic investments within these trends. Of course, knowing the pace of change, and selecting winning technologies and companies, is the challenge. We will look to invest in companies with strategic operating advantages and, when appropriate, strong IP positions. Our investment strategy is to build a portfolio of companies balanced between development projects that generate cash flow and near-to mid-term exit opportunities, and longer-term investments to build value.