This technology company is led by a woman who developed and built with her team a production line of proprietary manufacturing equipment and process recipes that can rejuvenate for retailers and textile manufacturers their post-industrial and post-consumer clothing waste, including natural, synthetic, and technical fabrics and fabric blends, back into virgin quality fibers for use in making the same garments. The company's rejuvenated fibers are made with up to 95% lower carbon emissions, low energy use, and negligible water use, and provide customers the flexibility to replace virgin fibers in new clothing products up to 100%.
The company's end-to-end traceability enables these customers to track their waste from origin to end use in a garment to demonstrate that their clothing is made in a greener, more sustainable, and more circular way to meet demands from governments and the public for change.
The production line can also remove the elastane resin that gives stretch to clothing that until now has left an estimated 85% of waste with no destination other than a landfill or incinerator. The breakthrough IP of this company brings the higher growth, higher profits, and advanced manufacturing jobs for bringing textile manufacturing back to America.
For more than two decades, our team has been successfully investing in the breakthrough innovations of technology companies — IP — that created American industries and prosperity, from the wireless industry (WiFi, 4G, and 5G) to the biotech industry (PCR), and beyond.
Over that same time, we have witnessed the offshoring of America’s manufacturing and IP to low cost labor markets trading higher profits for American jobs and unlocking fierce global competition today. We have also witnessed our society become more and more focused on short-term results and incremental improvements rather than investing in the long-term growth required to maintain our global leadership.
Without fundamental change in how we invest in our future and a return of the immigrant mindset that built this country, we cannot sustain our prosperity long-term in the face of global competition, nor will our freedoms endure, putting our nation’s future at grave risk.
Over the next 10 years, COTE will invest billions of dollars in a new generation of technology companies in a better way — a new paradigm — to empower the entrepreneurs and the innovations that can transform industries and ensure that our nation is not left behind.
We provide capital for scaling the manufacturing capacity and operations of companies with breakthrough IP assets, including new product designs, know-how, and manufacturing equipment, as they enter commercial markets and beyond to meet fast growing customer demand.
We receive a percentage of a company's revenues to provide our investors with an annual cash yield, paid quarterly, plus a percentage of a future company exit (IPO, sale) to buyout our revenue share, leaving equity ownership and control in the hands of the entrepreneurs building a business.
We provide IP management, technology, and operations support to protect, optimize, and scale the use of a company's IP assets, and we bring a shared technology platform for integrating smart manufacturing into the company's operations to optimize performance, efficiency, and profitability.
We focus on finding companies with breakthrough innovations that enable greener, more sustainable, more efficient production and operation of the products and services in an industry. Our world class IP expertise enables us to select technology companies with innovations that hold the potential to bring transformative economic value to an industry and that will deliver cash flows for our investors that have a low correlation to the ups and downs of stock markets and the state of the economy.
We look for breakthrough innovations that hold the potential to produce immeasurable ripple effects in the world when broadly adopted that will bring new opportunities to businesses and jobs to people everywhere — unlimited potential — and that will inspire entrepreneurs to develop cascades of new innovations.
America's prosperity, its freedoms, and its global leadership — the light that it shines in the world — have resulted from scaling the use of breakthrough innovations in manufacturing new physical products, from planes, trains and automobiles, to the telephone lines that connect our world, to the cellphones and smartphones in our pockets, to the computers and electronics in our homes and offices, to the Coca Cola that the world drinks.
Scaling the manufacturing capacity and operations of companies that have developed new physical products based on breakthrough IP.
High barriers to competitors developing competing solutions
(based on deep science and engineering requiring years to commercialize and large capital investments).
Investing in the overall business plan needs of companies that have developed new digital products based on software IP.
Low barriers to competitors developing competing solutions so higher risk (based on incremental improvements that enable existing businesses and new business models to operate over the internet).
Secured by the company's (i) breakthrough IP assets (new product designs, know-how, and manufacturing equipment), and (ii) contracts.
No losses expected.
Unsecured, relying on the promise of a company's business plan projections for higher equity valuations.
Paid from a % of company revenues
("revenue share" or "IP royalty").
% of company equity ownership
IP management, technology, and operations support, along with a shared technology platform for integrating smart manufacturing.
Monitoring investments and sharing access to a network of human resources.
Buyout % in a future company exit (IPO, sale) that buys out the revenue share OR a fund exit that sells the revenue share to others.
Equity ownership % in a future company exit (IPO, sale) that is at high risk due to competitors with competing solutions.
Yes. 12-15% annual cash yield, paid quarterly
(average cash yield over five years ramping up with revenues as the company scales, from a low of 5% in early years to 20% or more in later years).
5 years to a future company exit (IPO, sale) OR a fund exit that sells the revenue share to others.
5-10 years to a future company exit (IPO, sale) only to grow equity value to meet target return expectations.
Greater than a 2x net multiple, 20% IRR
(minimum expected for each investment because of the features of the IP capital investment model).
Target return for each investment:
(requires the capital + services of the IP capital model focused on scaling IP use for broad adoption).
Less than a 2x net multiple, 20% IRR
(total across all fund investments because of the high losses of the venture capital investment model).
Target return for each investment:
5-10x multiple, 100% IRR
(requires high equity ownership to make up for the high losses of the venture capital investment model).
No. No Management Fee
(1% fee per year paid from the revenue share in each investment, not Fund capital, and paid until an exit for performance in growing revenues).
Yes. 20% of Fund capital
(2% fee per year paid from Fund capital for the 10 year life of the Fund for monitoring Fund investments regardless of performance).
Yes. 5% of Fund capital
(paid upfront, one-time).
No transaction fee
(No online capital raise).
20% of Fund profits
(fund profits from revenue share & profits from revenue share buyout % in a future company exit OR a fund exit that sells the revenue share).
20% of Fund profits
(fund profits from equity ownership % in a future company exit).
Growing company revenues
(low correlation to the ups and downs of stock markets and the state of the economy).
Growing company equity value
(varies with the ups and downs of stock markets and the state of the economy).
A proven team, model, and process focused on investing in companies with breakthrough IP that is uncorrelated with public markets and the economy, asset backed, and provides a cash yield along with the potential for exponential growth in returns in a future company exit (IPO, sale).
Access to capital for building out manufacturing capacity and operations to meet customer demand, a shared technology platform for integrating smart manufacturing, and IP services to protect, optimize, and scale the IP assets, without giving up equity ownership or control or being forced to exit.
Long-term growth in jobs and higher wages to the people who work in these companies and the communities in which they operate, and laying a foundation for bringing manufacturing and IP back to America to ensure our nation is not left behind in the face of fierce global competition.