YXS Capital: Fueling Breakthrough Technologies

The next decade's market leaders are emerging at an extraordinary moment: record levels of undeployed capital, maturing advanced technologies, and a rapidly shifting geopolitical order are converging simultaneously. Far from chaos, we see this as the opening of a new industrial epoch—Industry 5.0—where digital intelligence is being woven back into the physical economy. Across manufacturing, healthcare, energy, finance, and logistics, automation and intelligent systems are fundamentally redefining how value is created and captured. Venture capital is adapting to new realities, but its core function hasn't changed: it's still the best system we have for turning bold ideas into world-changing companies.

Incubating advanced technologies has become mission critical to maintaining America's dominance amid a changing world order.

Historic Liquidity Seeks Inflation-Adjusted Returns

With global M2 money supply surpassing $120 trillion and monetary velocity near record lows, capital is abundant but productivity-seeking returns are scarce. The brightest allocators are moving capital into emerging asset classes that can compound above record inflation as traditional fiat currencies continue to lose purchasing power.

We are living through the largest monetary and structural reset in modern history. Over the past fifteen years, the world's major central banks have injected more than $7 trillion of liquidity since 2008 through quantitative easing. In the United States alone, M2 rose from approximately $8 trillion in 2010 to more than $22 trillion by 2025, reflecting extraordinary accommodation and credit expansion that has fundamentally altered the nature of capital itself. This liquidity helped inflate asset prices across equities, housing, and private markets while compressing real yields to levels that distorted traditional investment logic. Headline CPI peaked at 9.1% in 2022, but that snapshot understates the lived experience for many households: in major real estate markets, with exposure to education, healthcare, and rising rents, the effective inflation rate for these cohorts approaches 15–20% annually. Over just five years, housing prices in many metro areas have risen 40–60%, while tertiary cost pressures—tuition, insurance, medical premiums—compound relentlessly. In a regime of real inflation around 15%, purchasing power halves every five years. We are witnessing the recalibration not only of nominal returns but of the meaning of capital. The U.S. dollar is being steadily devalued, and astute allocators are funneling capital into assets capable of generating real, inflation-adjusted growth—before the next regime shift arrives.

Secondary Market Mobilization

With $162 billion in secondary deals in 2024 (+45% YoY), the private-market ecosystem is fast becoming an institutionalized engine for company growth outside public markets.

The rise of the secondary market marks one of the most important shifts in modern finance—a structural evolution redefining how liquidity, valuation, and access work in private markets. Global private assets under management have grown to over $13 trillion, up from $3 trillion in 2008, driven by expansion across buyout, venture, private credit, and infrastructure. Within this ecosystem, secondary transactions reached $162 billion in 2024, up 45% year-over-year, with forecasts exceeding $200 billion by 2025. These trades are no longer driven by distress but by deliberate portfolio management. According to Lazard, 51% of LPs selling in 2024 did so to rebalance exposure, compared to 33% driven by liquidity needs. Twenty-seven transactions above $1 billion closed last year, with pricing improving to 89% of NAV, reflecting growing sophistication in the market. What was once a backdoor for forced sellers has become an institutional tool for strategic capital rotation. This shift is creating a new hierarchy of access: investors with exposure to secondary markets—sovereign funds, endowments, and advanced family offices—are front-running growth cycles by acquiring stakes in mature private companies ahead of public revaluations, while traditional allocators remain limited by regulation and access. As capital circulation accelerates, the market is clearly bifurcating—those embedded in the secondary system will capture compounding value, while those confined to public channels will see diminishing returns.

Global Industrial Arms Race

The 21st-century arms race is industrial—its weapons are fabrication plants, batteries, and algorithms.

Globalization is being redefined around resilience, sovereignty, and technological competition. Decades of offshoring maximized efficiency at the expense of redundancy, leaving supply chains vulnerable to disruption. The pandemic and geopolitical shocks of recent years revealed these weaknesses in stark relief—from semiconductor shortages that halted automobile production to medical supply gaps that endangered national security. The result is not deglobalization but a coordinated reindustrialization cycle that is both economic and strategic. The United States is leading this shift with historic levels of industrial investment. Manufacturing construction has tripled since 2019, reaching an annualized rate of $225 billion, the highest in recorded history. The CHIPS and Science Act alone has catalyzed more than $540 billion in announced semiconductor projects, while the Inflation Reduction Act directs roughly $370 billion toward clean-energy incentives and federal loan guarantees. The $1.2 trillion Infrastructure Investment and Jobs Act is rebuilding the foundation of commerce—ports, rail, roads, and water systems—representing over $2 trillion in coordinated public-private capital aimed at reshaping U.S. industrial competitiveness. Across the world, other economies are mobilizing with equal urgency. The European Chips Act allocates €43 billion to double Europe’s share of global semiconductor production by 2030, while the EU’s Green Deal is transforming its energy and grid infrastructure. In Asia, China’s $138 billion high-tech fund is targeting AI, quantum computing, and semiconductors as instruments of state power. Japan has committed $7.4 billion to quantum technologies; India is offering production-linked incentives to develop 100 GWh of battery cell capacity; and South Korea’s chaebols are investing hundreds of billions into advanced manufacturing and energy systems. We are not in a trade war in the traditional sense—we are facing an industrial arms race, where the weapons are fabs, batteries, and AI intelligence. The prize is not short-term economic gain but technological sovereignty—the ability to control the infrastructure, data, and energy systems that will define national power for the next century.

The Once-in-a-Lifetime Technology Convergence

For the first time in history, multiple exponential technologies—AI, semiconductors, robotics, sensors, and batteries—are reaching maturity simultaneously, compounding their impact across every sector of the global economy and fundamentally reshaping the world order.

The global economy is entering a period of simultaneous inflection across several transformative technologies—artificial intelligence, semiconductors, robotics, sensors, and energy storage—each advancing at a pace that reinforces the others. Artificial intelligence adoption is scaling at unprecedented speed, with over 60% of global enterprises now deploying AI tools in core business functions. At the same time, capital investment in semiconductor fabrication has surpassed $540 billion, robotics shipments are compounding at 14–20% annually, and global battery manufacturing capacity is set to expand tenfold by 2030, reaching nearly 8 TWh. Energy storage costs continue to fall—already below $100 per kWh for leading chemistries—unlocking rapid growth in electrification, autonomous systems, and next-generation mobility. These shifts are not isolated trends; they are converging into a unified technological stack that connects intelligence, computation, and energy into the infrastructure of the modern economy. Historians will likely view this decade as a turning point comparable to the invention of electricity or the internet. Each of these advances exhibits the hallmarks of a General Purpose Technology: steep cost declines, multi-industry reach, and the ability to catalyze new innovation cycles. AI is emerging as the cognitive infrastructure of commerce; robotics is redefining industrial productivity; and batteries are becoming a fundamental unit of mobile energy delivery. The simultaneous maturity of these platforms represents a generational opportunity to invest in the technologies that will define not only the next business cycle but the next century of growth. This is not another software wave—it is the largest coordinated infrastructure build in human history, fusing intelligence, automation, and electrification into the backbone of the global economy.

YXS Capital: Investing in the Next Generation of Technology

YXS Capital, with 5 unicorns across 14 investments, has generated returns placing it among the top-performing venture investors in the world.

YXS Capital is a venture investment firm focused on technologies that strengthen the foundations of economic competitiveness and national resilience. The firm invests at the intersection of intelligence, infrastructure, and innovation, including artificial intelligence, automation, geospatial systems, energy technology, and financial infrastructure. These domains represent the essential drivers of future productivity and security and form the backbone of the modern industrial economy.

At YXS, we have demonstrated the ability to identify category-defining companies before they become consensus winners. Portfolio highlights include Canva (49x), Mercury (35x), Aircall (20x), Wise (16x), and HubSpot (16x), companies that collectively transformed design, fintech, communications, and digital enterprise. Conviction in these investments came from three key advantages: (1) proprietary access and demand intelligence, developed through direct relationships with founders and enterprise buyers; (2) firsthand product understanding, allowing the team to recognize unmet needs as active users of these technologies; and (3) institutional-grade diligence, combining customer validation, financial stress testing, and competitive analysis to ensure defensible business models and scalability. This approach has produced a 14.6x gross TVPI, 6.6x DPI, and 51% IRR across 14 investments, with five companies reaching unicorn status and several integrated into Fortune 500-scale platforms through strategic transactions. The firm’s investment discipline is built on access and patience. More than 60% of YXS’s deal flow originates directly from repeat founders with prior exits, allowing early entry into high-quality opportunities before competitive processes emerge. The firm avoids FOMO-driven investing, prioritizing sustainable revenue growth, proven operators, and technologies that address structural market needs. Each investment undergoes detailed diligence covering legal structure, cybersecurity, IP, regulation, and financial resilience, and is monitored through a comprehensive KPI framework. With over $3 billion in M&A execution experience and co-investments alongside $6 trillion in global AUM, YXS combines institutional rigor with first-hand founder experience.

In closing, the next era of growth will not come from financial engineering but from industrial re-engineering. For the first time since the post-war boom, the global economy is rebuilding its productive foundation from first principles. Factories, grids, transportation systems, and digital infrastructure are being redesigned with intelligence embedded at every layer. More than $6 trillion in coordinated industrial transformation is already underway—$2.1 trillion in clean energy investment, $540 billion in semiconductor projects, $1 trillion in grid modernization, $400 billion in data centers, and $2.7 trillion in defense programs. Each dollar invested in these systems multiplies downstream economic activity, catalyzing entire supply chains and new industries. At YXS Capital, we view this transformation not as a cycle but as a generational reset. The economy is reorganizing toward resilience, intelligence, and capability, and the companies enabling that shift will define the next century. Our mandate is clear. We finance builders who operate with ethics, purpose, and create real utility that transforms emerging technologies. We invest in inevitabilities, not possibilities, backing the companies building the future industrial base of the modern world.

Welcome to the era where intelligence, infrastructure, and sovereignty converge. Welcome to investing in Industry 5.0.