Compete or cooperate? Five deep tech investors choose collaboration for mutual benefit over competitive strategies

The prisoner’s dilemma is a classic thought experiment that delves into how individuals may choose to collaborate for mutual gain or potentially betray one another for lesser rewards.

Now, venture capital appears to lean toward which outcome? A collective of Boston investors hopes for a different narrative.

This week, a consortium consisting of five venture capitalists and the head of a real estate consultancy unveiled Venx (or venx), a collaborative group focusing on deep tech investments. These five investors originate from four distinct firms — Anzu Partners, Hitachi Ventures, Myriad Venture Partners, and SkyRiver Ventures — and while they still independently decide when to invest, this initiative could mark the inception of something larger.

“The necessity for partnerships in deep tech investments, and the importance of collaborative efforts, seemed evident,” remarked Hyuk-Jeen Suh.

Suh, a general partner at SkyRiver, drew inspiration from startup accelerators like Greentown Labs in the Boston area. Beginning with just a handful of climate tech founders, Greentown has evolved into one of the world’s largest deep tech incubators. Initially seeking lab space, the founders swiftly recognized the manifold benefits of shared space extending beyond mere rent reductions.

“If you examine the startup ecosystem, they’ve discerned that collaborative work yields superior results. There are efficiencies of scale,” Suh emphasized. Moreover, such incubators and shared spaces can function as a one-stop destination for investors scouting for startups.

Historically, venture capital has lacked a comparable framework. While Silicon Valley boasts Sand Hill Road, Suh perceived this thoroughfare more akin to an array of car dealerships along an “automobile mile” rather than a collaborative collective. “They’re all vying against each other. I felt there must be an alternative approach.”

Venx’s formation was facilitated, in part, by the diverse nature of the four firms, spanning investment stages from pre-seed to later stages, and encompassing a spectrum of interests within deep tech, including climate tech, AI, and biotech.