Decades of Experience Creating Alpha in Emerging High Tech Verticals
Van Wagoner Ventures Early Years
We have specialized in Public and Private/Late Stage Venture investing in US based emerging technology solutions for 30+ years. The Company's initial mission was to leverage the "Direct Research" model employed at prior firms to advise a family of 5 Mutual Funds, the "Van Wagoner Funds" (VWF) focusing on new technology verticals reaching $4 billion in AUM (sold 2009). He won the prestigious Lipper Performance Achievement Award 5 times; no other fund manager has won it twice.
Venture Capital Genesis 1997
VWCM entered the venture capital business in 1997 when it realized its public securities investment process would be successful analyzing and selecting late stage/expansion capital private securities and would capture the arbitrage discrepancy between public and private valuations.
The asset allocation decision was very effective, investing over $300 million in late stage/expansion capital private securities between 1997 and 2003, supporting 54 portfolio companies with a return multiple of 3.0x and an annualized ROI of 99% including 25 IPO’s.
After the internet bubble burst in 2000, VWCM realized the arbitrage between public and private late stage/expansion valuations had disappeared and sold its remaining venture portfolio by 2003, leaving late stage VC investing for 7 years.
Van Wagoner Post 2010
After the mortgage crisis subsided in 2010 we began to get re-interested in exploring industry niches in venture capital creating impact with non-concessionary ROI and measurable impact.
Quickly becoming discouraged by more traditional VC vertical, we began to pay attention to the technology surrounding the transformation of all means of transportation to alternative fuels and a vision of a total transformation of the transportation grid.
Although there were many first generation companies with great potential that failed: we all know sometimes being early is being wrong! We were convinced the technology advancements were starting to assure the success of this transformation.
Financing the “New Economy” Mobility Connected Transportation Grid
The due diligence and ongoing research and significant experience in recognizing new disruptive technologies fundamentally changing traditional vertical markets led us to sharpen our focus on the ROI potential of a mobility connected transportation grid.
By developing relationships with industry consultants, fleet managers, public officials and thought leaders we have used this domain expertise to reach the following conclusions:
The $1 trillion transportation vertical was being disrupted by “New Economy” start-ups utilizing software technology to design and integrate standard components creating fundamentally new solutions for global transportation markets
The OEM’s and their Tier 1 partners were likely to follow rather than lead allowing significant market presence to develop for the “New Economy” leaders in each of these traditional verticals
Lack of competition for deal flow stems from VC’s lack of focus on this vertical, being deemed too painful given past experience, too capital intensive or not enough disruptive technology for today’s VC models
Significant alpha will be generated in this vertical and Van Wagoner Ventures can capture it.