The Winnebago Seed Fund pursues a Money for Minnows investment strategy. Money for Minnows doesn’t have a technology or product focus but does have an investment focus – be the first investor in startup companies. This strategy has been employed previously by the Kegonsa Capital Partners managed seed and early stage funds. The Winnebago Seed Fund will be employing the same proven process and investment parameters. The Fund’s strategy is to be the first investor in new Wisconsin companies, in some situations forming a new company with the product inventor.
Money for Minnows is in contrast to the Whale Hunting investment strategy. The primary goal of Whale Hunting is to deliver superior returns by investing in companies with a plan for the company exit to be in excess of $100 million dollars. Often venture funds using this strategy target specific technologies and markets. This strategy is based on the assumption that these select companies will be the big winners in their market. Fund managers employing this strategy make multiple and typically increasing dollar amount investments in the select companies, typically in syndications with other investors. Compared to the Money for Minnows strategy, Whale Hunting involves more investment dollars and fewer companies created.
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