What do we do and how do we do it?
Batterson Venture Capital, LLC's goal is to create a collaborative relationship with entrepreneurs built on a foundation of mutual partnership and trust. This foundation is the cornerstone upon which our successes are built from and true innovation continues to thrive. BVC’s objective is to consistently deliver compelling venture capital investment opportunities to high-net-worth investors by:
- Capitalizing on more than 100 combined years of successful venture capital investing and business building experience coupled with an extensive and diverse network of deal flow sources
- Employing classic venture capital investment techniques that have resulted in outstanding investment returns over the past 30 years
- Taking advantage of current market conditions that have resulted in a tremendous shortage of available capital for early-stage companies requiring $500,000 to $5 million to maximize their growth
- Providing a ready source of capital, strategic partnership, and operational support to budding entrepreneurs possessing breakthrough technologies, extraordinary management teams, and innovative business models
Len Batterson and his associates have been successfully investing in venture capital since the early 1980’s. Possessing deep expertise and experience in high technology, biotech, energy, medical device, and media, the BVC team has created a dynamic platform for discovering, building, and nurturing new or growing enterprises that have the potential to become world-class companies. This optimal collaboration between selective investment and meticulous management provides vital growth to entrepreneurs as well as an outstanding source of quality deal flow for investors.
How are we different and why does it matter?
Today, entrepreneurial seed, start-up, and early-stage phases of development in need of a half million and up to $5 million to propel them into the next level of growth is a widely neglected area of investment. In 2011, only 6% of all funding was allocated to this "sweet spot," and this is where BVC makes its greatest impact for its investors and new vital technologies. With 94% of investment capital searching in other directions, the number of quality, undiscovered, breakthrough opportunities becomes a rather large pool of opportunity. This results in a lifeline at a critical stage for worthwhile entrepreneurs and multiple options with clearly-defined exit strategies for our investors.
The firm is structured in a unique manner that affords high-net-worth investors two different ways to invest: direct ownership in the firm as an LLC member and/or investment in individual LLC deals that are presented to the BVC investor network. In this, BVC offers investors the widest flexibility for movement within their respective investment spaces.
Investment in the firm
New investment in the firm provides full participation in proceeds from our current portfolio companies such as Third Stream BioScience, Cleversafe, and NextGen Solar, as well as all future deals. BVC's goal is to secure 2-3 new deals per year for the next five years. With a minimum investment of $50,000, the investor is entitled to a 15% annual interest note on invested capital in addition to an equity ownership share of the gain on successful deals. Interest on the note is accrued until a successful exit transaction on a portfolio company takes place. At that time, distributions are made in the following order; interest on outstanding notes is paid first, return of investor's capital second, and any remaining profits split according to ownership percentage thereafter. From that point forward, an investor continues to receive their share of profits from any additional successful exits that occur. Management does not participate in proceeds unless and until our clients have first recouped their investment and a handsome return. Investment in the firm also grants investors the opportunity to invest further in individual deals as it suits them.
Individual deal investment
For those investors preferring an a la carte menu for investment, BVC, LLC offers its members first priority on opportunities in new and ongoing individual deals. Investors in individual deals are charged 2% of invested capital annually plus a 20% carried interest on successful transactions. The minimum investment for individual opportunities is $25,000.