If the concept of investing in new technology companies that are being guided by seasoned management is of interest to you, please fill out our investor contact page.

There's a very good reason for the adage "Venture Capital invests in management,  not ideas."  A weak idea with a strong management will beat a weak management team with a strong idea every time.  Not that we're interested in weak ideas, mind you.

Wellspring has participated in regional venture capital organizations for over 15 years and in that time we have seen quite a few deals come and go.  Due to the time-intensive nature of our involvement, we can only work with a small number of deals at a time.  As you might expect, we are extremely picky about which companies we choose.

Q.  When is a limitation a virtue?

Although some would point this out as a limiting factor, we believe it is a defining strength of our business model.  We think that Wellspring FV-assisted companies will perform far better in aggregate than typical “write the check and pray” VC-funded companies where the VC meets with the management at board of director meetings to review the issues.

The reason for this belief is simple.  We’re on the job on a daily basis!  Permit us an analogy:  If you were piloting an oil tanker and could only take a snapshot of your position once per day, could you pilot it as effectively as if you had the wheel in your hand at any time?  Growing businesses are like oil tankers in some ways, with inertia and lead times moderated with the need to be quick and responsive.

We wouldn’t be doing this if we weren’t entrepreneurs.

While most VCs are happy with 2 out of 10 investments providing the profits and funding the losses of the other 8 companies, we believe our new model will deliver 4-5 “winners” for each 10 investments.  Of course, our new business model is being proven right now and the VC model has been honed over many years so we understand and welcome healthy skepticism.

The flip side of this argument is the fact that we become involved with our companies so close to their inception that the valuations we typically see are better than any investment round, angel or professional.  What this means is that the desired return on capital for a Wellspring FV company can be achieved with relatively modest exit valuations.

If we are right about achieving a higher “hit” rate than conventional VCs and we achieve more advantageous positions in our portfolio companies, the returns could be delightful.

I’m still interested, despite the disclaimers …

Wellspring FV has two ways that interested investors can get involved.  If you register with us, we will contact you with information about our companies when they are in fund raising mode.  You will be invited to a presentation of the company’s story and senior management and will have the opportunity to ask questions, view business plans, technology, prototypes and also meet the founders.  From there your interests may lead you to contact us to move further toward an investment.

The other way for an investor to participate in the growth of Wellspring FV portfolio companies is to invest directly in Wellspring FV.  Wellspring’s holdings include stakes in all companies currently in the portfolio (the positions vary constantly due to company financing and option dilution) and represent a risk profile that differs from investing in an individual company.   If you would be interested in exploring this option, please contact us for a confidential business plan and offering prospectus.  Please remember that in all cases, early stage investments are highly illiquid and that there is a risk of loss of capital.

Those who have invested in Wellspring FV get an additional benefit, that being a right of first refusal for subsequent rounds of the portfolio companies.  In one case so far, the round was fully subscribed by Wellspring FV investors and no outsiders were even contacted.  These investors were able to increase their positions in a portfolio company that was meeting milestones and gaining inertia without competing with outside VC funds or other investors.

Whether or not you are a candidate to invest in a Wellspring FV deal, we encourage you to join our mail list.  Our "FV Flyer" provides timely information, market analysis and, of course, self-serving PR by the truck load.  To subscribe, please fill in the necessary info on our investor contact page.

If the concept of investing in new technology companies that are being guided by seasoned management is of interest to you, please fill out our investor contact page.

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