Kieran Jina on Optionality

March 16, 2023

Optionality is a powerful driver of value in venture capital. As a venture capital company, one of our primary objectives is to identify the diamonds in the rough. These promising ventures often come to us at very early stages of their journey, at a point where the level of technical comprehension to really understand the true nature of the company’s developments and evaluate the associated market opportunities and risks, is at its peak. This typically requires an exceptional level of technical understanding, making it difficult for individuals to invest on their own.  

Our investment strategy primarily focuses on pre-seed to Series A capital, and we specialise in working with early-stage companies, or as we often refer to them, “diamonds”. We invest in these diamonds and actively contribute to their growth to assist them in reaching a point where they also become attractive to other investors. However, for individual investors, this can present challenges, as once a company attains success, there can be a flood of investors seeking opportunities.

This is where optionality comes into play. We offer our investors the opportunity to invest individually later, at a stage when they feel more comfortable investing on their own, utilising the rights we’ve acquired in the companies we have invested in. These rights provide our Pacific Channel investors with the opportunity to participate in the growth and success of these diamonds, even if they didn’t invest in the initial stages.

By offering optionality, we enable our investors to align their entry points with their risk appetite and investment preferences. This approach enhances the overall value creation potential within our venture capital funds.