Tuesday, 25 October 2016
Last updated 5 hours ago
Mar 18 2010 | 9:46am ET
A Silicon Valley technology hedge fund is investing in a very specific sort of technology.
Palo Alto Investors’ micro-cap fund invests “exclusively” in “overlooked, misunderstood and undervalued segments of the equity market.” One of those segments, apparently, is the sex toy industry.
The $1.5 billion firm is among a group of Silicon Valley investors to pour $2 million into JimmyJane, which makes high-end vibrators, Private Equity Week reports.
“There is a big brand vacuum and nowhere is brand more relevant than here,” JimmyJane founder Ethan Imboden told PEW. “This is a multi-billion dollar market.”
Imboden, who studied electrical engineering and genetics, said JimmyJane holds several patents, including on technology that makes its latest model—called the “Form 6”—both waterproof and rechargeable.