• Tze Venture Search Fund

    for Aquaculture Technology

     

    We seek a single target – a standalone aquaculture technology or one within an early-stage company. Deploying capital from our network of investors, we will identify, fund, and operate. Our managing partner will start or join the management team.

    Within aquaculture, feed protein innovation is where we have the most experience and therefore our likely focus. Health, genetics, or other technology are also possibilities.

  • Press

    Aquaculture Investment Pioneer Launches Search Fund for an Alternative Aquafeed Technology

    Press Release by F3 Challenge, excerpts:

     

    February 24, 2017 — Aquaculture investor, David Tze, announced today the launch of the Tze Venture Search Fund for Aquaculture Technology focused on aquaculture feed technology.

     

    “The new fund will do entrepreneurship through acquisition,” said Tze, who directed the first and only true venture fund for aquaculture, Aquacopia Ventures I. From its first investment more than ten years ago, Aquacopia was pivotal in creating a wave of important aquaculture companies, including the offshore farm Open Blue, equipment innovation firm InnovaSea, and the feed ingredient technology firm and affiliated Chinese joint venture iCell/Nutrinsic. Those companies put more than $200 million in capital to work in the growing aquaculture industry.

     

    Tze’s new search fund will focus on innovation in the aquafeed ingredients sub-sector, seeking a single aquaculture technology to acquire, operate, and grow. Since the first half of 2016, Tze has been focusing both his entrepreneurial skills and network of private investors on aquaculture technology, with a specific interest in alternative protein ingredients for aquaculture feeds. After significant winnowing, Tze said he is evaluating four alternative proteins for aquaculture feeds. While he has not publicly identified them, the pool of ingredient technology prospects includes genetics, primary nutrient production, and value-added processing. One is a distressed patent portfolio, two are companies, and one is a solo inventor.

  • latest press

    Aquaculture’s $100bn Feed Challenge Presents Big Opportunity for Entrepreneurs​

     

    "'Marine species have evolved for hundreds of millions of years to eat the types of nutrients that are found in the ocean, while man has ... cultivated crops on land for thousands of years,' [Tze] said. 'There is, however, limited overlap between these two domains and that overlap is already fully exploited by existing feed formulations, which consequently must rely heavily on feeding fish to fish, in the form of fish meal and fish oil. Science is now playing a role in coming up with novel, alternative ingredients to stretch a limited amount of sustainable marine ingredients from well-managed reduction fisheries while reducing reliance on unsustainable sources, as aquaculture production goes from 50 to 100 million tons a year.'"

     

    - AgFunderNews, April 2017

    marine ingredients?

    While the fund is not considering entering the marine ingredients category, it does project that the mid-term, commercial future of aquafeeds include those that contain marine ingredients, as well as those that do not.

     

    The goal of any fund transaction with an ingredient technology will be to provide feed milling companies an additional, potential component to achieve optimal nutrition and cost.

    search fund Defined

    Search funds, broadly, are vehicles for entrepreneurs to raise funds from investors interested in making private equity investments. Sometimes, they are referred to as "independent sponsors," since equity may be indicated, but not firmly committed.

     

    A small group of qualified investors back solo or partnered operating managers to search for a single target. Investors are able to invest a pro-rata share in the transaction, if they choose. For us, the transaction will not be a company acquisition; it will be an investment to take a governance position or to found a new company around a technology that has been acquired or licensed.

     

    In the final stage, the manager of the search fund takes a full-time operating role in the company. In our case, that will include operating activities in corporate finance, strategy, and business development. Titles may include: CSO/EVP, CEO, and/or Chair.

     

    - Loosely adapted from searchfund.org

    press archive, 2017

    Unique articles regarding the fund announcement by Global AgInvesting, GAA Advocate, Fish Farming Expert, The Fish Site, IFFO Update, Aquaculture Magazine, and Intrafish.

     

    F3 press release replication includes Aquaculture Directory, Aquafeed.com, and Undercurrent News, which, not entirely incorrectly, paraphrased the name of the fund as the "Search Fund for an Alternative Aquafeed Technology".

  • Who

    David Tze

    directed Aquacopia, 2004-2017

     

    Aquacopia Ventures I LP was the first and only venture capital fund for aquaculture. Its sole, active co-founder, David Tze, was pivotal in creating a portfolio of important aquaculture value chain companies that has put to work over $200 million in capital, from multiple sources. His unique sector focus within investing has made him a primary resource for education and deal flow among investors exploring aquaculture.

     

    Now, as managing partner of a new search fund, David will take a more hands-on role in the next such aquaculture technology company. He is changing roles, from entrepreneurial financier to finance-minded entrepreneur, from coach to player.

     

    After coming of age in southwestern Virginia, David earned an economics A.B. at Princeton. He has advanced several established industries by applying new technology and innovative business models, originally with several start-ups, at the dawn of the commercial internet. He was the founding CTO of Texas’s venture-backed, online equipment marketplace for the oil and gas industry, Network(Oil) International. It was acquired by the publicly-traded marketplaces group, Liquidity Services.