“There is no monopoly on brains” – Joseph J. Jacobs
Although we are a venture capital fund of funds, we are also venture capitalists.
We felt that the traditional venture capital model needed to be changed. We no longer want to assume that we can invest in companies within a single sector, invest only in our own backyard, invest only on our own, or invest only in companies that had with 10x returns.. In addition, we do not invest in companies based on the mathematical assumption of relying on a few successful companies to cover our less fortunate.; all are risks that we are not willing to accept.
We primarily invest in funds that we have syndicated with in the past, have sat on the board with in current or previous portfolio companies, or come highly recommended by our existing partner funds for consideration.
Jacobs Capital Group was formed by the late Dr. Joseph J. Jacobs, the Founder of Jacobs Engineering Group (NYSE:JEC), and his longtime partners, Alex Suh and William Hanna, for the purpose of building long term sustainable businesses and to experiment with creating a more efficient venture capital model. As entrepreneurs, we learned success was often predicated by hiring people smarter than ourselves. In the same vein, JCG was created to form a collaborative partnership with other open-minded venture capital funds who would work together by sharing their expertise, knowledge, resources, and network for the benefit of their portfolio companies and investors.
More importantly, the majority of the funds we have invested in include partners we have sat at a Board table with and seen in action. Every company has its ups and downs. When a company is at a peak, no one complains. Only in a downturn (which will happen)can we observe the true working styles of our partners around the table. Will they get frustrated and fault management or will they roll up their sleeves and help find a solution? We look to invest in like-minded partners who understand how to jump in during critical inflection points and deliver constructive value.
We know it is not cost effective to open offices in every city of the world. Also, it is not realistic to say we can sprout deep networks or understand each culture we come across. Furthermore, we believe that some parts of company building are best left to local expertise.
By investing in like-minded venture funds around the world, we believe we are able to preserve the merits of local venture investing, while capitalizing on global opportunities. We are able to partner with established teams that already have deep networks and cultural knowledge while assisting the company day-to-day. We can watch and nurture our investments side-by-side, in a mutually beneficial relationship as an extension of one another’s teams.We can leverage key insights and connections from different markets, creating a diversified resource pool for the benefit of our portfolio companies.
It takes more than financial support to build a successful company. We bring the greatest value to our partners and portfolio companies through our collective experience and relationships. This trusted network allows us to validate intellectual properties with one another, share the lessons learned from related experiences, identify customers or consultants for our companies, and source opportunities that might not otherwise exist.
Also, the breadth of our network is invaluable. We have experts in sectors from video games to stem cell engineering, and in geographies that span from Scandinavia to the United States to Asia. Our collective expertise allows us to aggregate quality deal flow, which improves our ability to create more successful outcomes for our partners and portfolio companies.
More importantly, the majority of the funds we have invested in include partners we have sat at a Board table with and seen in action. Every company has its ups and downs. When a company is at a peak, no one complains. Only in a downturn (which will happen)can we observe the true working styles of our partners around the table.Will they get frustrated and fault management or will they roll up their sleeves and help find a solution? We look to invest in like-minded partners who understand how to jump in during critical inflection points and deliver constructive value.
No one is an expert in everything.
“There is no monopoly on brains.” – Joseph J. Jacobs
With this belief, we invest in multiple experts and use our networks to increase our knowledge base. We believe it is more efficient to take advantage of a collective database than it is to recreate a database with each new enterprise.
If we haven’t been at the forefront of a space, we prefer to partner with those who have. We invest in emerging managers who share this philosophy and collaborative approach because we think leveraging resources ultimately strengthens the portfolio companies we support.