OmegaX Invests in the Foundational Elements Driving Technological Innovation

All venture capital firms are looking for the next big thing whether in AI, IoT, robotics, SaaS, or the blockchain. But underneath these advanced technologies are the essential heavy-duty equipment, machinery, and hardware. While these necessities may not make the news with as much media buzz, these foundational pillars are what make AI programs like ChatGPT and everyday consumer electronics like smartphones possible.

That’s what US-based investment fund OmegaX focuses on. By acquiring and investing in the companies building the core underlying technologies that make the fastest-growing, most-hyped technologies run seamlessly, OmegaX is investing in the foundational elements that drive future innovation in the here and now.

The investment fund, which does both venture capital and M&A, was founded by a successful American serial entrepreneur who cofounded a leading global multi-billion-dollar integrated solutions provider for high-tech applications. OmegaX focuses its investments on transformational companies that can benefit from its founder’s vast expertise and network array in technology, supply chain, operations, sales, finance, and manufacturing.

An Investment in Semiconductors

One acquisition last year to highlight was Pivotal Systems, a Silicon Valley-based company that enables AI chip manufacturing for the semiconductor industry. “The company’s employees enjoy working with their customers to solve their toughest industry problems,” shared Pivotal CTO and cofounder Joe Monkowski. “We’ve gained a reputation over the years for being the go-to supplier for industry-leading gas flow solutions.”

But it’s a business whose true potential many other investment firms have missed out since it was already around for 20 years, was publicly traded, and was going through an industry-wide downturn. What they did have though, was a best-in-class product and a talented driven team.

“Pivotal Systems is a pioneer in its field and quality standard for excellence in its industry,” said Eddy Chiang, investment director at OmegaX.

Pivotal’s product suite is an example of the kinds of foundational technologies the fund invests in. They’re an important piece of the puzzle to the end process of everyday consumer electronics and state-of-the-art industry 4.0 technologies. They’re a [Pivotal] building block that makes all the technologies we use in everyday life possible.

Prioritizing the Potential of Core IP Technologies and Strong Teams

Once OmegaX determines a strong potential fit in the core technology and team, they’re willing to make the investments needed and will leverage their vast connections and expertise to support the company’s new growth trajectory.

“We’re willing to really go in spending time and fixing what could have been not working in the past in order to re-accelerate growth for the future, versus some other investment funds where short-term time horizons for a return on investment (ROI) is more important,” Mr. Chiang said. He described the virtue of patience and having a long-term vision as hallmarks to the OmegaX investment approach. Whereas a company’s books tell one story, the company’s capabilities and what it could do and what it does tell another story. That’s where the interest is for OmegaX.

Global Strategic Partnerships and an Extensive Network

OmegaX works with the company management providing the expertise that they may lack whether those gaps are in supply chain, distribution, manufacturing, sourcing, or sales. Generally, the businesses that OmegaX is interested in are already the best at what they do on the product side. OmegaX then leverages its extensive experience and global network, increasing sales on the revenue side while improving on costs.

That’s what they’ve done with Pivotal Systems, whose CEO Jan-Yu Weng shared that OmegaX’s experience in scaling companies, global supply chains, and aggressive capital infusions have enabled the company to ramp up faster and better, thereby allowing their technology to reach more customers.

“It’s allowed us to take advantage of new opportunities,” said Mr. Monkowski, adding that OmegaX’s hands-on enthusiasm and drive to serve the company’s customers have been instrumental to its success.

Long-term Vision and Future Potential

OmegaX looks at the future potential in terms of who the current team is and what their core technology is. “We’re willing to make the investments necessary in the beginning, roll up our sleeves together, get our hands dirty, in order to propel growth forward,” said Mr. Chiang. OmegaX works on a longer timeline than most when they know a company has something special. While OmegaX is after all an investment fund, what comes first and foremost is the core intellectual property and the people.

OmegaX has proven it is willing to incur short term challenges from the get-go and help drive everything in terms of supply chain and sales forward to get to where we need to be.

There are several more exciting transformational deals in the OmegaX pipeline for the 3rd and 4th quarters this year. The investment team is continuing to look everywhere-finding those visionary entrepreneurs and proven experienced management teams with the same ambitious shared goals.