A New Model For Venture Capital
At Wisdom, we possess non-traditional beliefs around the standard Venture Capital model and structure. In most cases, VCs are focused on up-and-coming founders creating disruptive technology or new ideas. We believe creativity doesn't stop at 30 and that experience is gained over time through both wins and losses. We seek savvy, seasoned entrepreneurs who either want to turn their idea into a new business or seek to help brilliant startups realize their own. Correspondingly, we believe in military veterans. Veterans possess tenacity, decisiveness, adaptability and lack entitlement as result of their training and real world experiences. All of which are key, if not vital, ingredients for success in the creation of a startup.
“If you own a hoodie but wouldn't wear it to a first meeting, you may fit our profile.”
Venture Capital is a tough business. The average venture fund underperforms the S&P 500 index over the long run and for many, especially in the lower quartile, this is before carry (~20% of profits) and management fees (typically >2%) are taken out. At Wisdom, we’ve taken a radically different approach with a structure that includes no carry or management fees. We invest alongside our Limited Partners and through the combination of their wisdom and ours, we ensure our companies are getting the best advice and counsel from mentors who already succeeded in building, operating, selling and acquiring companies. We believe the end result is larger returns for our whole team (most importantly, our entrepreneurs and their teams).
