EICA thrives in uncharted territory. Trusting our instincts and vision and experience, we seek out and invest in companies with truly revolutionary potential. For us, disruptive technology with extraordinary return potential is – simply put - our comfort zone.
EICA prefers seed and early stage investments in privately held companies. We invest and maintain significant equity positions in our portfolio companies throughout their life cycles – often taking part in follow-on funding, and playing an active role in building, guiding and growing companies from early stage to exit.
We have recently expanded this model very successfully to include equity positions in public companies that our principals have concluded have existing disruptive technologies whose benefits can be leveraged and expanded within the base of the UAE and the GCC.
We hold up to 4.9 percent of the equity in various companies in equity markets throughout the world. Each of these we believe have the potential to provide gains in excess of 100 % on an annual basis over a five year term which is our ultimate exit or rollover strategy.
Currently we hold only one position in the portfolio which exceeds 9.9 % of the company’s equity and that is Axial Vector Engine Corporation (AXVC.PK), which is an American company with engine, and electrical generation technology, which hold great promise for our region and all regions of the world.
We have a deep respect for the needs of our entrepreneurs, and complete transparency in relation to our level of involvement, we custom-tailor our investment strategy to each company's individual needs. Together, we build the right mix of financial resources including equity and debt, managerial involvement, administrative support, and highly proactive business development activities.
Our most active category is Renewable Energy but from a much different prospective.
We believe that the dominant industry (fossil fuels) and the disruptive renewable energy industry are similar to the RIAA and the digital industry in the sense that one will not evolve into another. The short-term profit loss is too large. Let me give some data to support that claim.
Exxon-Mobil is the world's 2nd largest company (after Walmart, it was #1 last year) and the world's single most profitable company. #3, #4, #7, #9, and #10 are all fossil fuel companies. The remainder of the top 10 (#5, #6, #8) are all automobile manufacturers. Fortune Global 500
Exxon Mobil has 22.2 billion barrels of oil in proven reserves Businessweek
Crude is roughly $100 USD / barrel, which means their reserves are worth 2.22 trillion $USD. Their market cap is only $500 Billion reflecting the extraction costs of the crude. If energy could be produced for the equivalent of $90/barrel (10% less), Exxon Mobil's reserves would (overnight) be worth 200 Billion less. BP, Chevron, etc are the same deal but they have smaller reserves.
Saudi Arabia has 259 billion barrels, Kuwait 98 billion barrels, United Arab Emirates 92 billion barrels and Iran 93 billion barrels.
Several *nations*, including the United States own large Crude Oil reserves which actually provide treasury money. The same analysis as applied to Exxon can be applied to these countries and you see why the Global card game is much different now.
"During the first three quarters of 2007, Venture Capitalists poured $2.6 billion into clean tech startups, compared to $1.8 billion for all of 2006, and a mere $533 million in 2005. TechCrunch. Clean Tech now counts for 10% of all venture capital investment. Internet technology accounts for 15%. I'd bet the crossover point will be reached in 2008. There is a lot of investment money going into renewable energy.
If the US passes even light carbon taxes, the renewable energy industry will probably surge in market cap overnight. Right now, renewable energy still costs more than non-renewable, but carbon taxes (or cap/trade) would change the ratio instantly. That is what the VC's are betting on. If this happens, Exxon Mobil will similarly lose billions of dollars off their market cap. That means if Exxon Mobil can slow that progress even by a few years at the cost of a billion dollars in lobbying, it is a steal for them. By embracing clean tech, they will sink like a rock. That leaves a big gaping hole for new companies to fill the gap, and there aren't any really huge leaders at this point. The technology is still new, but breakthroughs are coming. If someone produces renewable energy at scale for cheaper than non-renewable (without government help), then they are going to win big. Hence Google's RE<C effort.
We are excited about this industry. In our humble opinion it will be the disruptive technology that is the "Next Big Thing"like the Internet was. A lot of venture capitalists would agree with us.
Our private and public company investments in this sector have found the huge gaping hole which is to cut dramatically the use of fuels and emissions by producing the same amount of power with 40 % less fuels and 50 % less emissions.
Contact us to learn more:
Tel. : +971 4 3295575
Fax : +971 4 3324236