Why invest in our Asset Factory.
Updated: Apr 2
We are often asked to clarify why Hangar 75 focuses on creating assets rather than ventures, and how that provides a more reliable and rapid return for investors.
Clearly we can offer no guarantees, but below are some key pointers on why investors can generate a minimum 2X return on funds within 24-months, with less risk, whilst also having a much greater upside potential.
Start with the exit
When evolving ideas, we are thinking about which ideas if executed well, could generate the most value when deployed into a large distribution channel. If we can't quantify the value, or identify at least 5 potential acquirers then the idea is cut. If we can, we start on creating the narrative, building the asset, and socializing it with our target acquirers.
Creating an asset for sale is different to creating a venture with intent to take it on the complete journey to unicorn status. We much prefer the challenge of creating something that has the potential to become a unicorn in the hands of others, and describing that potential accordingly, to justify a better exit price.
Gray is exciting
An asset does not need to be the latest, shiniest innovation. Our assets can solve a small challenge, optimize a broken process, or provide a new more efficient way of doing things. The common thread being our asset must generate measurable value that is significant enough to generate worthwhile investment returns.
Do just enough
We can limit our spend on certain activities, given that an asset is likely to be consumed by a global brand who may wish to modify it, perhaps a re-brand, or integration into a larger suite of products. We can therefore re-direct more effort into the aspects of the asset that contribute to the greatest value uplift rather than those which are more subjective or of less interest to a target acquirer.
Friends in high places
Hangar 75 has worked with brands across 4 continents. We work with senior stakeholders within these businesses, and are able to quickly socialize our asset with the right people in order to trigger a pilot and acquisition process. Our understanding of their business from customer engagement strategy through to underlying financials, allows us to structure models that are entirely aligned to their business objectives and aspirations.
Our end game is achieving an exit within 24-months, generating a significant return whilst minimizing risk. In light of this we are inclined to lean towards deals with potential acquirers early on in the journey. We will look to broker pilots with a target acquirer where we can validate the value of our asset within their environment. We will couple the pilot with an option for the corporate to acquire the asset within a set period at pre-determined price.
Create. Sell. Repeat
Our approach and execution capability is proven, and built to accommodate multiple concurrent asset journeys. It is the very same framework that has allowed us to generate over $1.5B of value for clients across 4 continents.