Bill Cadogan

The Optimist

Bill Cadogan is a believer. He believes the economy will become vibrant again. He believes that will happen in months, not years. And he believes he and others of his ilk will profit greatly from it.

“It's a great opportunity if you believe that communications will return to where it once was,” says Cadogan. “It's an opportunity to invest while valuations are down and create substantial return.”

In February, Cadogan retired as chairman and CEO of ADC Telecom and became a general partner at St. Paul Venture Capital. Which explains his ilk, and why he has to believe.

But what of all the negatives — of the layoffs, the capex reductions, the bankruptcies, the risks? That's where being a venture capitalist with 25 years of operational experience comes in handy. Cadogan can tell his investment subjects what they should be doing.

“Venture firms are turning to people who have led companies in good periods as well as bad ones,” he says. “This downturn ushered in a new sense of accountability. We're giving our portfolio companies clear guidance about getting as much as they can out of each dollar they spend.”

The kind of companies Cadogan guides run the gamut, covering the optical and IP networking and network management realms. He says 60% to 70% of St. Paul's $3 billion venture fund is devoted to the communications sector. And if you believe Cadogan, that sector is poised for a comeback.

“The decline is starting to flatten out,” Cadogan says. “We're at the bottom part of the ‘U’.”

Cadogan says he still works 50 to 60 hours a week, which most people wouldn't consider much of a retirement. But he relishes the strategic involvement with different kinds of companies at different stages of growth. Which leads to one thing that Cadogan can't believe.

“It's hard to believe they're paying me to do this,” he says. “I love this job.”