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CID helps fund discover leading and investable tech innovators

How The Singularity Group and CID partnered up to separate the true (and successful) innovators from the hype.

At a glance

In a world where everybody is talking about innovation and technology, it can be hard to identify true innovators. The Singularity Group (TSG) has found a way.

To cut through the market noise, media hype and buzzwords surrounding “innovation”, TSG only invests in applied innovation. And it does so with the help of CID.

TSG concerns itself with the value chains and the real work penetration of new technologies.

Applied innovation is therefore the best measure of true innovation – and enables them to separate the Nokias and Netscapes of the world from the Apples and Googles.

The challenge

How do you identify applied innovation in a market crowded with speculation and hearsay?

With the huge proliferation in technological advancements showing no sign of slowing down, there’s never been a greater opportunity to uncover the next unicorn business. But this isn’t easy.

TSG’s strategy puts Think Tank-fueled analysis and tangible, real-world evidence before opinion and fundamentals before market hype.

That’s why it’s been so successful in investing in companies that generate actual revenue from innovative, game-changing technologies today.

While thematic approaches mostly follow trends and customer demand, an applied innovation portfolio covers many themes on a continuous basis, and by default – with TSG seeing innovation as a constant rather than cyclical phenomenon.
When it comes to identifying innovation, TSG also needs to stay ahead of the game – instead of being late to or even missing out on the game.
Venn diagram of TSG Applied Innovation
Picture (c) The Singularity Group

The solution

TSG’s approach to this challenge? Making innovation an investing metric.

The Singularity Think Tank helps to continually update the Group’s understanding of value chains and cash flows within the Singularity Sectors.

This information allows TSG to calculate the “Singularity Score”. This score represents a company’s exposure to currently relevant innovation value chains. It is a unique innovation indicator and a key metric in the construction of the Group’s investment strategies.

To make the most out of their proprietary data set, TSG leverages CID’s AI system, which combines the best of human and Artificial Intelligence.

TSG uses CID’s Affinity as a support to identify and verify investment targets and revenue lines for their Singularity Sectors. Using ThemeScape, they turn expert input into qualitative criteria to assess company and sector exposure to innovation – and combine this qualitative analysis with fundamental data revenue analysis.

TSG leverages qualitative expert insight and fundamental data to ensure its investing in genuine, applied innovation – not mere buzzwords.
Their use of ThemeScape increases the efficiency and scalability of their analysis and enriches their investment decisions with more comprehensive insights.
Illustrative line graph

The results

The fund combines human expertise, fundamental data, and AI to optimise its selection of relevant investment targets.

A deep understanding of Singularity Sectors and their value chains enables TSG to capitalize on innovation by identifying it, wherever it’s happening (i.e. not just in the tech sector).

With the use of AI, TSG supports research & equity analysts in their research process with self-service, no-code tools that puts rich insights at their fingertips.

Learn more at https://singularity-group.com

Portrait of Evelyne Pflugi
We focus on cash generation with innovation across industries through understanding technology value chains. This is what sets us apart from classic “theme funds”.

Evelyne Pflugi, CEO and Co-Founder, The Singularity Group

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