Case Study: HNC Software
A Patient Investor in an Early Concept
Situation
- A pioneering academic had a breakthrough idea: apply neural network software for data analytics in banking, insurance and retail
- Investment resulted from extensive research into Artificial Intelligence sector, identifying an industry pioneer, Robert Hecht-Nielsen at UCSD
- Battery provided sole start-up financing and impetus to form the business
The Battery Difference
- Recruited executive management team and Board of Directors
- Raised four rounds of VC and strategic partner financing
- Advanced the technology with patent fortress developed internally with funding from government agencies
- Led the business strategy, including diversification into retail vertical and identification of large and important credit card fraud market
Result
- Being a patient investor paid off
- IPO: NASDAQ (HNCS)
- 11 years on Board of Directors
- Acquired by Fair Isaac for $810M, now part of $2.4B Company
- Paid back entire fund in year 12 of the fund’s life
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