Introducing BlueSky Capital
Early-stage venture capital for component technologies.
Every platform shift in the computing industry has coincided with deep technology innovation–and multi-billion dollar opportunities–at the components layer (e.g. silicon, optics, materials, sensors, etc.). The shift from mainframe to personal computing coincided with the growth of transistors, integrated circuits, microprocessors–and giants like Intel, AMD. The shift from personal computing to Internet coincided with the growth of networking, broadband, and communications–and giants like Qualcomm and Broadcom. The shift from Internet to mobile coincided with the growth of wireless, MEMS, and cameras–and giants like ARM and Apple.
Now, the next platform shift is underway from mobile to the Internet of Things and robotics. Just like the shifts before it, this too coincides with rapid innovation and dynamic opportunities in the enabling components layer. Emerging applications, like self-driving cars and smart homes, and traditionally “offline” markets, like smart cities and agriculture, are driving fundamentally new needs and constraints all the way down the stack to the physical materials. This in turns creates openings for new markets and entrants, again just like prior shifts. White hot categories like “LIDAR” or “AI chips” are early indications that the components opportunity is real and gathering momentum.
Historically these kinds of opportunities were largely limited to large-scale, capital-rich incumbents but, this time around, the capacity to innovate has been democratized and brought within the reach of the proverbial “scrappy founders in a garage”. It’s easier and cheaper than ever to design and manufacture scale new component technologies, in part due to software/AI to model and iterate ideas, robotics/automation to scale production, and globalization. There’s also more interest and maturity than ever by universities and labs to commercialize IP through startups rather than license to corporates or hoard patents. Taken together, components founders and grassroots startups are finally positioned to capitalize on these opportunities and build large standalone companies. Incumbents like Apple and Intel are no longer the only game in town for the best talent, ideas, and markets in component technologies.
Even as component technology opportunities open up to founders and startups, it’s unclear they can access the “smart” capital and specialized help they need to succeed. Government organizations like DARPA and NSF are the dominant sources of funding and support for this audience, but only up to the point of productization and commercialization. In theory this is where traditional venture capital steps in but in reality investing in “deep tech” and the IP/component layer investing is only recently back in fashion after the industry has spent the past two decades investing in “lean startups” and the application layer. And among the small base of “deep tech” venture firms, none are exclusively focused on component technologies.
This is a startup niche we deeply care about and want to better serve with our new firm, BlueSky Capital. We aspire to be the first call for pre-seed/seed founders focused on component technologies and enabling hardware advances, with a focus on silicon, materials, optics, and sensors. We will be the first institutional capital and strategic partner to help founders get from concept to product-market fit. And, as a Louisville KY-based firm, we believe world-class components founders can and will emerge outside Silicon Valley, so we will be actively investing across all geographies within the U.S. Lastly, we are independently controlled and financial returns-driven, but with deep ties to Samtec Electronics that enable us to move quickly, invest with conviction, and leverage partnerships and scale to unlock $1B+ potential.
We’ll be sharing more about our focus areas, how we work, and more in the coming months, but don’t hesitate to get in touch if you’re a component technology founder who wants to learn more.
