Microsoft Corp. Founder Bill Gates is known as an all-around smart guy, but he’s a man of many hats.
Gates is also an astute investor with diverse holdings in numerous sectors. As you might imagine, one of Gates’s favorite investments is tech startups, and he made some interesting moves in March. Benzinga takes a look at some of Gates’s tech bets:
SpyBiotech: Viruses occur naturally in nature, and their effects can range from moderately incapacitating to flat-out lethal. Throughout much of human history, the best defense against viruses has been vaccines. Maladies like polio, chickenpox and the flu took terrible tolls on society until the development of effective vaccines.
SpyBiotech is an Oxford, England-based company that is dedicated to researching and developing “the next generation of vaccines.” Specifically, the company focuses on two areas of vaccine research: improving the effectiveness of current vaccines and developing new vaccines for viruses that currently have no cure. Although both endeavors are cash-flow intensive, the potential returns on even one positive hit will be incredible. Perhaps that’s why Gates is so bullish on their future.
DelSiTech: One of the biggest issues with medication and cures for pathogens, viruses and diseases is how to administer the medication to infected patients. DelsiTech is one of the world’s foremost companies creating biodegradable silica released, small molecule drugs, biopharmaceuticals and small molecule vectors. The applications of the technology it is developing are nearly limitless.
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Traditionally, medications are administered via shots or pills, but many patients with advanced conditions are too weak to swallow. Additionally, a number of diseases and infections affect areas of the body where operations to remove them would be so invasive that they risk the patient’s life. DelSiTech’s work on nanoparticles and small-dose medicine deliveries could revolutionize the way diseases and illnesses are treated. It’s easy to see why Gates is such a big fan.
Noze: Noze is a Canadian tech company that is changing medicine through a sense of smell. Noze creates a digital nose that can sniff out the presence of diseases or health threats. Many people underestimate the power of the nose as an aid to medical science. A lot of ailments have specific odors, even if the human nose can’t detect them.
The use of dogs as service animals for epileptics because they can smell seizures coming or the anecdotes of dogs being attentive to the point of obsession to a part of their human’s body where cancer is later discovered speaks to the power of a well-tuned nose to aid in medicine. Imagine having a digital Noze screener in the room that could detect the presence of COVID. That type of capability excites Gates for obvious reasons.
Zoetis: Zoetis is America’s biggest provider of medicine and vaccines for commercial livestock and pets. Its technology is important because the possibility of zoonotic diseases like swine flu and bird flu being transferred to humans and creating a pandemic is an ever-present risk. Additionally, the rise of antibiotic-resistant superbugs is largely the result of the overuse of antibiotics in livestock.
In addition to working on other more flexible treatments to lower the use of antibiotics, Zoetis develops medications that reduce the amount of methane emissions from cows. Methane emissions on macro farms are a major concern for many climate scientists. Zoetis’s work on these kinds of projects is why it has attracted Gates’s attention as an investment opportunity.
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Breakthrough Energy Ventures
In addition to Gates’s personal investments, Breakthrough Energy Ventures, part of the Bill and Melinda Gates Foundation, made some interesting moves in the energy sector by investing in the following companies.
Stratus Materials: Stratus Materials is dedicated to providing materials for lithium-ion batteries. Lithium ion is a critical component in rechargeable batteries, which are widely viewed as a critical component in renewable energy and the fight against climate change.
But lithium ion is notoriously difficult to produce. The process requires a number of different rare Earth materials such as cobalt and manganese. The materials Stratus provides are designed for use in the light- to medium-size battery range that powers many electric vehicles. It’s easy to see why Breakthrough Energy Ventures is invested.
ClearFlame Engine Technologies: ClearFlame Engine Technologies is dedicated to making a safer, more emissions-friendly diesel fuel. Diesel motors power most of the commercial engines for the trucks and ships that transport commercial goods around the world. But diesel fuel has a lot of harmful and dangerous effects on the environment. ClearFlame is creating ethanol fuel solutions for diesel motors.
This will allow diesel motors to burn cleaner and could save up to $2 per gallon in fuel costs. Both outcomes would have a significant impact on the environment while making a lot of money for investors. The potential results grabbed Breakthrough Energy Ventures’ attention.
Viridos: Viridos is a biofuel company that focuses on using algae and bioengineered algae for conversion to commercial fuels. The mass transportation industry is heavily dependent on fossil fuels to power jets, ships and trains. All those fuels are notorious for high emissions, which intensify the climate crisis.
Viridos’s mission is to supply sustainable aviation fuel (SAF) and renewable diesel (RD) on a scale that would replace traditional fossil fuels and could turn the company into a global energy powerhouse in the years to come. Gates and Breakthrough Energy Ventures have made a sizable investment in them.
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Final Thoughts
Looking at Gates’s investment strategy has a recurring theme. He is heavily invested in technology he thinks will allow the world to become a better place. Whether it is in medicines and biotechnology or renewable fuels, Gates is committed to supporting tech companies and startups that will offer game-changing potential in the sectors where they operate.
This doesn’t mean these investments are without risk, but there is something to be learned from Gates’s strategy. These are growth sectors, with high upside potential. If one of the world’s leading businessmen is invested in them, it’s worth considering how you might get in on the action.
See more on startup investing from Benzinga.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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