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The Alchemy Group |
OUR PHILOSOPHY
Alchemy creates competitive ventures between tech hubs
There are lots of smart people in the Pioneer Valley, but few tech start-ups. This region lacks the polished, ready-to-invest deals tech hub investors are familiar with, but it’s richly resourced with all the ingredients: talent, business ideas, technology, capital, mentors, and infrastructure. We see this in hundreds of small ways. One of our partners was talking to a computer science PhD at a kids’ birthday party this winter, for instance, who said he wanted to keep his family here after graduation, but couldn’t find firms who needed his skills. He’ll likely leave Amherst for the West Coast.
It’s not just us – while the top 3 tech hubs (Silicon Valley, Boston, and NYC) deploy $1,500/year in per capita venture investment, the other top 20 are at $300, and the rest of the country only gets $25. That’s a 10-50x gap. It’s an opportunity for investors and an unlock for economic development.
Alchemy has figured out how to do venture investing here, combining local ingredients into compelling projects. We do this by funding pivots. We start with a talented founding team, upgrade the business model, add differentiating technology, provide seed funding, and assign veteran executives as coaches. This yields high-potential deals, at attractive valuations, which we de-risk throughout their formative early days. Our initial portfolio shows the power of this model.
There are lots of smart people in the Pioneer Valley, but few tech start-ups. This region lacks the polished, ready-to-invest deals tech hub investors are familiar with, but it’s richly resourced with all the ingredients: talent, business ideas, technology, capital, mentors, and infrastructure. We see this in hundreds of small ways. One of our partners was talking to a computer science PhD at a kids’ birthday party this winter, for instance, who said he wanted to keep his family here after graduation, but couldn’t find firms who needed his skills. He’ll likely leave Amherst for the West Coast.
It’s not just us – while the top 3 tech hubs (Silicon Valley, Boston, and NYC) deploy $1,500/year in per capita venture investment, the other top 20 are at $300, and the rest of the country only gets $25. That’s a 10-50x gap. It’s an opportunity for investors and an unlock for economic development.
Alchemy has figured out how to do venture investing here, combining local ingredients into compelling projects. We do this by funding pivots. We start with a talented founding team, upgrade the business model, add differentiating technology, provide seed funding, and assign veteran executives as coaches. This yields high-potential deals, at attractive valuations, which we de-risk throughout their formative early days. Our initial portfolio shows the power of this model.
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