After investments from local venture capital firms, Idle Free Systems was acquired this month by Phillips & Temro Industries. According to Ken Johnson, who has devised the system of Badger Fund of Funds, the investment firm made three times its investment back on the sale.
Johnson’s hope for the system is that venture capital funds will be able to invest $100m or more into small companies across various industries. The fund was kick-started with $25m from the state of Wisconsin, and Johnson continues to raise private money, with the hope of beginning investments in 2015.
Idle Free Systems was created in Robert Jordan’s garage. A native of Watertown, and a former over-the-road trucker, Jordan taught himself electrical engineering to solve the problem of truckers leaving their trucks running to power air conditioning, heaters, and televisions while they are parked.
Jordan created prototypes, and received investments from Johnson’s Kegonsa Capital Partners, based in Fitchburg. They helped Jordan locate an experienced CEO, and create an independent board of directors. The company saw substantial growth, which put them on the radar for Phillips and Temro.
Johnson told the Journal Sentinel that if every investment went like this, Badger Fund of Funds would “walk on water”. He hopes that the fund managers for Badger will be the average age of Google’s fund managers.
