VCapital invests principally in the equity securities of what we believe are exceptionally high-potential, emerging growth companies.
We offer compelling investment opportunities in early-stage companies in industry sectors with the most fertile conditions for exceptional, profitable growth. In our view, these sectors include: social media, mobile digital products and services, cloud computing and big data, Internet commerce, green/clean technology, educational technology, innovative media and telecommunications, biotechnology, medical devices, biomedical and drug discovery. These sectors are all benefiting from foundational technological advances that foster new growth opportunities and lower the difficulty and up-front cost of starting a business.
Within these sectors, we seek to capitalize on broad market trends that could increase the likelihood of commercial success. These include globalization, category consolidation, branding, convergence, and network effects.
We identify high-quality, growth companies. We rely on: our collective industry knowledge; insights into and an understanding of where our extensive network of leading venture capitalists are investing; far-reaching relationships; and independent research to identify potential leaders in the targeted sectors.
In particular, we invest in companies that are:
- Addressing large markets with differentiated and disruptive products that hold potential to drive predictable, sustainable growth; and are
- Led by strong management teams with an in-depth, operational focus.
We hold a smartly diversified portfolio of equity investments, though far narrower and more discriminating than most crowdfunding investing firms. We expect to offer 8 to 12 strong crowdfunding equity deals per year.
An appropriately balanced portfolio is important to maximize success. We believe that accredited investors benefit from diversity not just in their overall holdings but also within their venture capital investments.
We continuously evaluate the composition of our portfolio as well as our pipeline of investment candidates to ensure we are considering an appropriately diverse set of companies within our target sectors and investment areas. But we’re not in a hurry. We’d rather have fewer yet better investments on offer. That’s how our win rate stays so far above average.
Our greatest investment focus (70%) is on companies with demonstrated potential that need funding in the $500k-$5 million range. We expect approximately 30% of our funds to be earmarked for later stage investments and for special situations where the potential for a strong return is significant.
While past performance is not a guarantee of future results, there is something to be said about one’s ability to pick winners. Not just once-in-a-blue-moon, “got lucky” winners. But to consistently, and over time, be able to evaluate and identify a higher-than-average percentage of winners. That’s the kind of performance that counts.
So it’s worth repeating here that VCapital is led by the Batterson Venture Capital team, with Len Batterson serving as Chief Investment Officer. Len is an experienced, proven venture capital executive and savvy investor. Since 1983, he has led several major venture capital investing organizations with a cumulative gross internal rate of return (IRR) of 28%.