Serial entrepreneur Will Zell has launched Vessel, a new management and holding company for his VC fund, startup formation and partial ownership of an angel investing group.
The primary fund, Zell Capital LLC, will do business as Vessel and invest in three to four startups yearly, Zell said in an email, as well as in one to two companies per year that the management company will create, working with entrepreneurs from the idea stage.
However, the Columbus-based fund will not start deploying capital until an undisclosed fundraising target is reached.
"We have an evergreen fund structure, so it is a different process than a traditional fund," Zell said. "Our goal will be to raise a certain amount of capital each year to build the portfolio.
"We have a solid direction moving forward that will enable us to build toward our vision."
Vessel's slide deck (deck – get it?) on its website uses nautical themes to liken startup founders to "explorers of old" who search for new territory and face daunting odds until landing on product-market fit and sustainability.
The hands-on group aims to guide founders from the earliest stages, seeking ideas that can significantly improve upon an aspect of an existing large market, while taking a large equity stake.
All of the images were AI-generated, he said, including a group around a long boardroom table, as waves spill out to surround the table from a giant painting of a galleon in full sail behind them.
As the management company, Vessel will oversee the primary fund, the startup studio and other initiatives, including a planned debt financing investment vehicle.
Vessel also has partial ownership and provides back-office support for Ohio Angel Collective LLC, which formed late last year for both experienced and new investors to back early startups. The group, which has grown to 112 members, aims to make eight to 12 investments this year, Zell said.
That group plans to focus mainly on Ohio-based startups, with a fairly broad focus of tech, tech-enabled services and some consumer packaged goods. In contrast, the main fund looks globally, with new portfolio companies in Los Angeles and Israel.
In either entity, investors must be accredited by the U.S. Securities and Exchange Commission – generally based on a net worth of $1 million or more besides a house, or $200,000 in reliable annual income.
Last spring, Zell Capital converted to a traditional privately held VC from its original "access" model open to non-accredited investors. While that structure remains a goal, Zell said, it's unworkable under current regulations that hinder marketing and online communications.
About 70% of the fewer than 100 investors transitioned to the private fund, according to regulatory filings. Since then the firm has raised from high-net-worth individuals, Zell said.
The primary fund added three portfolio companies last year, including AssetWatch, the Westerville company making wireless sensors systems for preventative maintenance in manufacturing, which Zell co-founded.
