The prisoner’s dilemma is a traditional thought experiment that explores how folks can collaborate for mutual acquire — or how one would possibly screw the opposite over for a lesser reward.

Are you able to guess which final result enterprise capital would possibly resemble? A bunch of Boston traders needs it have been completely different.

This week, a bunch of 5 enterprise capitalists and the top of an actual property consultancy launched Venx (or ven^x), a collaborative group that focuses on deep tech investments. The 5 traders hail from 4 completely different companies — Anzu Companions, Hitachi Ventures, Myriad Enterprise Companions and SkyRiver Ventures — they usually nonetheless make particular person choices on when to jot down a verify. However it could possibly be the beginning of one thing greater.

“The necessity for partnerships for deep tech investments, and the necessity to work collectively, it appeared apparent,” Hyuk-Jeen Suh advised TechCrunch.

Suh, common companion at SkyRiver, was impressed by startup accelerators like Greentown Labs within the Boston space, which started with a handful of local weather tech founders and has grown into one of many largest deep tech incubators on this planet. Initially, Greentown’s founders have been searching for lab area, however they shortly realized the advantages of the shared area went far past decrease hire funds.

“If you happen to have a look at the startup ecosystem, they’ve discovered that working collectively is healthier. There are economies of scale,” Suh mentioned. Plus, such incubators and different shared areas can function a one-stop store for traders searching for startups.

Till now, enterprise capital has been missing one thing comparable. Sure, there’s Sand Hill Street in Silicon Valley, however Suh felt that thoroughfare was extra like a group of automotive dealerships alongside an “vehicle mile” than something resembling a collaborative group. “They’re all competing. I felt like there needs to be a distinct method.”

A part of what allowed Venx to coalesce, Suh mentioned, was the truth that the 4 companies run the gamut of funding phases, from pre-seed to later phases, and signify a spread of pursuits inside deep tech, together with local weather tech, AI and biotech.

The truth that the collaborative emerged amongst deep tech traders isn’t shocking. The kind of issues deep tech startups face favors cooperation over cutthroat competitors. They have an inclination to require deep swimming pools of capital, costly lab gear and different expensive infrastructure. The issues they’re making an attempt to sort out typically ship them into uncharted territory. And the options they arrive at have a tendency to profit from a range of considering.

For traders, there’s a lot blue sky in deep tech that Suh doesn’t assume secrecy and jealousy give anybody an edge. “Why do VCs really feel like they should compete? Will we not have sufficient carbon to take away? Plastics to recycle or take away? Breast most cancers to treatment? Not sufficient challenges in AI?” The shared data and entry to offers ought to profit LPs, too, Suh mentioned.

If this appears like a syndicate, it’s — kind of.

Like syndicates, the group shares leads, and every investor brings their very own perspective and experience to a pitch assembly. However in contrast to syndicates, which on the enterprise stage are typically casual and advert hoc, Venx is a extra formalized association with the kind of intimacy solely shared area can present.

For now, Venx consists of an workplace area the place the companions sit, rub elbows and speak store over lunch. There’s a gathering room the place they will collectively hear pitches from founders, after which they collect to share their ideas. The group is open to new members so long as the vast majority of their investments are immediately in startups (not different funds).

It’s straightforward to think about Venx morphing into one thing extra. Extra companions, extra funds, maybe a shared fund from which the group can write checks, much like an angel syndicate. No matter it finally ends up turning into, Venx’s collaborative method is an intriguing experiment that’s value watching.