Overview

What if the hottest venture capital deals were online, for everyone to see? If investing in highly promising businesses were not a function of who you know, but available for anyone who has the resources? VCapital is changing venture investing for the better, making more funds available in the $500k-$5 million range to promising companies with sound plans and solid management teams.

Now you have the opportunity to invest in VCapital itself. This web-based platform facilitates 24/7 access for discerning investors to learn about high-quality venture capital investment opportunities, and makes investing in these opportunities more convenient and cost efficient.

Investors in VCapital Management Co., LLC will share in the proceeds of any successful portfolio company exit transactions as well as the firm’s potential exit at a substantial value. There are an estimated 10 million accredited investors in the US, yet only about 5% have ever invested in venture capital deals to date. That is about to change.

Team

vCapital Management

Leonard A. Batterson

Founder, Chairman, CEO and Chief Investment Officer

Currently Chairman and CEO of Batterson Venture Capital, Batterson has been a founding or early investor in a number of successful entrepreneurial companies and VC firms. Early in his career he was Director of Allstate Insurance Company’s VC Division, where he was integral in the financing and restructuring of Control Video Corporation, which became America Online. Other major venture capital and private equity firms with which Batterson has been associated include Advent International, APAX, Athena SA, M/C Partners and U.S. Venture Partners. Other notable Batterson investment winners have included Cleversafe, Cybersource/Beyond.com, Health Magazine, Advent International, Atlantic American Cablevision, Nanophase Technologies, Illinois Superconductor Corporation, and Omniflow. Over three decades, the funds he has led have delivered an average gross IRR of 29%. He received his BA and JD degrees from Washington University and his MBA from the Harvard Business School.

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vCapital Management

James E. Vaughan

Co-founder, Chief Investment Relations Officer, Member of The Advisory Board of Directors

Jim has nearly 25 years in the financial services industry, with expertise in all facets of creating customized investment solutions for high-net-worth individuals and small institutional clients. In 1990 he founded JE Vaughan Financial Services, providing insurance and investment planning to the owners of closely held businesses. In 1998, he founded William Blair Select, the open architecture investment management platform for Chicago-based William Blair and Company, established to perform critical due diligence on separate account investment managers, mutual funds, and a host of alternative investment vehicles, enabling financial advisors to craft fully diversified investment portfolios with a “best of the best” approach. This program grew to $1.2 billion in client assets during Jim’s 11-year tenure. Jim joined Batterson Venture Capital in 2009 as Managing Principal. After college at San Francisco State University, he played professional golf and was the Head Golf Professional at the Detroit Golf Club.

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vCapital Management

Steven I. Ross

Vice President, Finance and Administration

Steven is an accounting and operations executive with more than 20 years’ experience in the private equity (PE) industry. He brings to VCapital a proven record of accomplishment in fund administration, treasury management, accounting/tax operations, SEC/GAAP compliance, negotiations, process implementation and strategic planning.

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vCapital Management

Ryan Kole

Vice President, Investments

Ryan is an entrepreneur and former trader at the Chicago Board Options Exchange. He has his series 56 and 63 licenses and has consulted for hedge funds and family offices. Prior to joining VCapital, Ryan was a Venture Associate for DreamIt Ventures, actively screening companies for their accelerators. He has also been a frequent mentor for engineering students at Northwestern University and the University of Illinois at Chicago.

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vCapital Management

Ben Rowland

Chief Technology Officer

Ben is the co-founder of Tecture, a web design and development firm based in Chicago. Prior to Tecture, he was the Senior Software Engineer at Information Resources, Inc. (IRI) in Chicago, where he led the design and development of .NET applications.

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vCapital Management

Kenneth M. Freeman

Strategic Marketing Officer, Member of The Advisory Board of Directors

Ken’s role with VCapital leverages his 35-year career in marketing to capitalize on recent regulatory changes permitting media promotion of venture capital investment opportunities among the estimated 8 million U.S. accredited investors.

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vCapital Management

Frederick T. Tucker

Executive Advisor, Member of The Advisory Board of Directors

Frederick Tucker is an engineer by training, a former top executive at Motorola, Inc. and an Indy car racing enthusiast. An advisor to start-up companies, Fred has served on several boards, including chairman of ITS America, an advisory board to the US Department of Transportation responsible for assuring the coordination of public and private intelligent transportation initiatives in the United States.

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News and Press

Lifting of ad ban could stir investment market

Chicago Tribune

Hedge funds, private equity firms and venture capitalists will soon be allowed to advertise in search of "accredited" investors, thanks to the JOBS Act of 2012. The reporter interviews a few leaders in the field including Len Batterson.

Venture Capital in Chicago: Then and Now

Built In Chicago

Len Batterson presents an overview of Chicago as a major center of venture capital from the Chicago Fire in 1871 to today's 1871 entrepreneurial center in the Merchandise Mart, and how VC has helped Chicago's reputation as a city of innovation and progress.

Investor Presentation

Our Take

We are strong believers in the transformational power of the Internet. As experienced venture capitalists, we have looked to the web to improve the experience for both the entrepreneur seeking capital and the investor providing capital. Historically, individual accredited investors have lacked access to traditional venture capital firms, suffering sub-optimal returns when going it alone as angel investors. VCapital for the first time offers individual accredited investors access to join the professionals for rigorous screening, vetting, and investment management all the way to the exit — through a managed pool of funds or through individual direct investments.

Despite their online accessibility, early equity crowdfunding firms have not addressed the needs of discerning individual investors. Minimum investment requirements tend to be too small (often just $1,000), limiting the funds available for investment. Many seem more like “Internet plays” and venture capital investment flea markets, offering dozens . . . some even hundreds . . . of investment options, rather than a place where savvy venture capital investors practice their traditionally rigorous screening and due diligence. VCapital offers serious accredited investors access to our traditionally rigorous screening, due diligence, and investment management for a greater likelihood of success. We know of few other venture capital firms featuring a management team with a 30+ year successful track record that is as open to individual accredited investors.

Documents

VCapital Management Co., LLC Subscription Agreement

Subscription Documents to make a seed investment in VCapital Management Co., LLC

VCapital Management Co., LLC Offering Memorandum

Offering Memorandum of VCapital Management Co., LLC

VCapital Management Co., LLC Agreement

Limited Liability Company Agreement of VCapital Management Co., LLC

Frequently Asked Questions

How is VCapital different than a crowdfunding site?

While VCapital offers an Internet-based investing platform like the crowdfunding sites for online accessibility and convenience, it differs in important ways that benefit both investors and the companies in its portfolio. First, many crowdfunding sites have very low minimum investment requirements, as low as $1000. This either limits them to essentially low-level seed investments or requires hundreds (or even thousands) of investors for larger deals, a potential administrative nightmare for an early stage company as well as a serious impediment to individual investor inputs. VCapital is intended for more serious, discerning investors. Second, the crowdfunding sites often offer dozens or even hundreds of investment opportunities — somewhat like a venture capital flea market or lottery. VCapital is far more selective, employing traditional venture screening and due diligence, increasing the likelihood of investor success. Further, VCapital’s focus is on more substantial investments, most in the $500,000-$5 million range, versus the smaller, earlier seed fundings more prevalent in crowdfunding portfolios. The companies VCapital funds are generally still at an early stage but after they have more clearly demonstrated their potential for attractive growth. All of this is expected to enable greater returns.

How will investors in VCapital make their money back?

VCapital receives a 20% share of gains (carried interest) in the successful investments it makes, and VCapital investors participate in this carried interest according to their ownership. Importantly, we believe VCapital can grow dramatically over time due to its unique benefit delivery, magnifying the value of this carried interest. Less than 5% of America’s estimated 8 million accredited investors have been participating in venture capital investment due to historical inaccessibility as well as lack of awareness and understanding. Provisions of the JOBS Act of 2012 permitting media solicitation (offline and online) by VC funds and substantial easing of regulatory hurdles for start-up companies have the potential to dramatically expand participation from individual accredited investors. The VCapital management team includes highly experienced marketing talent ready to capitalize on this opportunity as soon as the market shows signs that it is ready. VCapital could thereby have opportunity itself for a successful exit by creating an enterprise value that could be sold to other financial service providers.

Other than its online investing platform, how is VCapital different than the traditional larger venture capital firms?

One shouldn’t minimize the significance of VCapital’s online investing platform. It offers individual investors accessibility not present with the larger institutional VC’s along with convenience and also administrative efficiencies that allow VCapital to charge lower management fees than the traditional firms. From an investing perspective, VCapital’s focus is primarily on early stage fundings in the $500,000-$5 million range. We believe this offers greater opportunity for the exceptional returns associated historically with venture capital. Large institutional firms, by investing more often in later stage ventures after share values have already reached high levels, have reduced their risk as well as the likelihood of providing exceptional returns.