VCapital is a professionally managed online venture capital firm led by a proven team offering equity crowdfunding opportunities that has never had a down decade in the past 30 years. We are generally focused on early-stage businesses:
(a) Whose potential has already been demonstrated through a successful angel/seed investment stage and
(b) That can, with additional capital, continue to move forward to grow and to deliver a significant opportunity for select investors.
We work with businesses on the verge of greatness to ensure they have the money and talent to move forward.
We work with individual investors ready to make a difference by investing in the businesses of tomorrow. Our accredited investors are able to make significant investments for potentially significant returns from companies poised to make their mark.
We work with angel groups seeking follow-on funding of their high-potential ventures as well as with angel investing groups looking to diversify with our highly curated opportunities.
We have reviewed hundreds of business plans, decks and presentations; met with many founders; served on Boards; and worked closely with entrepreneurs to help facilitate numerous exits. Only a select few companies are offered here for investment: those that we feel bring the best potential for a successful outcome.
VCapital focuses on funding in the $500k – $5 million range, an underserved target that takes nascent startup companies from good ideas to good businesses. We provide critical funding after entrepreneurs have tapped friends, family and early seed money, and have shown the potential of their business — yet before their companies are large enough to be attractive to institutional investors. This creates significant opportunity for our discerning investors.
A Funding Gap Exists.
Angel groups provide seed funds for many thousands of start-ups. All too often, however, the start-ups are left starved for the further funding they need to expand – even those that have demonstrated exceptional potential. Their needs often exceed the resources of their original angel group. Meanwhile, the traditional VC firms are focusing increasingly on fewer, larger, later-stage investments.
|2014 Venture Deals||Angel Investors||Venture Capital Funds|
|# of Deals||71,000||4,050|
|Billions of Dollars||$24.8||$49.3|
|# of Participants||298,000||635 active firms|
|Avg. Dollars Per Deal||$349k||$7.3 million|
Sources: Angel Capital Association, “Important Things to Know about Angel Investors- 2014”; National Venture Capital Association Yearbook 2015
VCapital is focused on this funding gap. We work with high-potential start-ups who have passed through the seed funding stage, demonstrate high potential, and now need Series A funding in the $500k-$5 million range. We will also provide follow-on funding to ventures that continue to demonstrate exceptional performance through their Series A stage.
We partner with individual accredited investors as well as with angels and angel groups that can use help with follow-on funding of their high-potential ventures or that seek diversification for their members.
What makes us different, as an online venture capital firm, is not just the access we have to deal flow. It’s that we have the skills and experience to select the right deals as well as the business experience to help promising young companies grow and succeed. And we make these “hidden gems” of investing available here to accredited investors. If you want to participate, please register as an accredited investor (with no obligation).
We are Not a Typical Crowdfunding Site.
VCapital is online to best meet the needs of today’s accredited investors for 24/7 accessibility, convenience, and informational transparency. Our Internet-based platform also enables efficiencies for lower management fees.
But that’s where the similarities to online crowdfunding sites end.
The new crowdfunding sites seem more like “Internet plays” to us than savvy online venture capital firms. A few may do well, but we expect most will disappoint investors as well as the entrepreneurs they are trying to support. Here’s why:
- Minimum investment requirements tend to be so small—usually in the $1,000-$3,000 range—that even early-stage deals may require hundreds or even 1,000+ investors. Startups don’t want the administrative headaches of dealing with these large crowds of investors.
- Many sites offer dozens . . . even hundreds . . . of venture options. Truly disciplined screening and due diligence are impossible. These sites are more like investing lotteries than disciplined, venture capital investment opportunities.
- Their overall results are likely to lag behind venture capital firms that are far more discriminating in their investment decisions.
And speaking of overall results, this next section should be of interest.
VCapital is led by the Batterson Venture Capital team, an experienced, proven VC winner, with industry veteran Len Batterson serving as Chief Investment Officer. Since 1983, Len Batterson has led several successful venture capital investing organizations. Since leaving Allstate, Len’s funds have generated a gross internal rate of return (IRR) of 28%.
- Batterson’s Allstate venture capital portfolio generated a gross IRR of 36%. Big winners included America Online, Health Magazine and Atlantic American Cablevision.
- Batterson, Johnson & Wang was Batterson’s lowest performing fund, yet it still generated a gross IRR of 14%. Biggest winners were Nanophase and Illinois Superconductor.
- Batterson Venture Partners delivered a gross IRR of 159%. This included three major winners – Nanophase, Beyond.com, and Cybersource.
Exceptional returns are also expected from Batterson’s most recent investment vehicle, Batterson Venture Capital. Buoyed by IBM’s recent acquisition of Cleversafe, BVC’s gross IRR is currently 35%.