DCA’s Approach to Nascent Industries Investment
The space technology industry is at the forefront of cutting-edge technological innovation, garnering attention in recent years due to significant advancement in rocket technology. DCA is focused on finding opportunities in less saturated areas of the market that are poised for rapid growth over the next 5-10 years. In the short term, we see in-space manufacturing and space infrastructure as two sub-verticals on the precipice of unlocking new commercial opportunities. In the future, we see space infrastructure as the catalyst for more experimental space applications, such as space tourism, mining, and colonization.
Similarly, the cannabis industry is still at an early stage, despite experiencing significant growth in recent years. DCA is monitoring the state of the industry as it enters what we believe could be an inflection point. Market share wins are likely to go to companies with defensible technology, scalable and cost effective processes, and broad vertical or even potentially global exposure.
The third leg of our core nascent industries strategy is tied to the emergence of online gaming. This industry is likely to go through several waves of innovation given the infancy of the legalization process, despite the many established players already placing bets in the space, including DraftKings, Caesar’s, BetMGM, FanDuel, Sportsbook, Barstool and more. DCA is focused on emerging technologies, partnerships, and crossover strategies in this space.
DCA's Crossover Strategy
Crossover investing is a key trend across the capital markets and an important component to DCA’s approach to AI investment. Put simply, a venture capital crossover fund is one that invests in both private and publicly traded companies, such as funds that hold onto some or all of their portfolio companies after they go public. DCA fully expects crossover investing to be a long-term trend that will play a prominent role in shaping the future of venture capital for a variety of reasons.
Longer Investment Lifecycle