Mark Vadon

Maveron missed out nearly a decade ago when it failed to make an early investment in Blue Nile, an online jewelry retailer that's now valued at more than $830 million.

But Maveron co-founder Dan Levitan isn't going to let that happen again. The Seattle venture capital firm is currently incubating a secretive e-commerce startup led by Mark Vadon, the co-founder of Blue Nile who held the CEO reins during the company's hyper growth phase from 1999 to March 2008.

"I turned him down twice for Blue Nile, like an idiot," said Levitan, when asked about working with Vadon. "I'd say it was a mistake, and hopefully I am smart enough to learn from my mistakes."

Levitan isn't saying much about the new startup, though he did confirm that it is operating in the e-commerce arena. Vadon said they are still working out details of the name and hope to share more about the focus and direction in the next three or four weeks.

"I am always amused when people are doing kind of the stealth startup, but it just feels like we are so early that we need to get more in place before we have people knowing too much," said Vadon, who remains executive chairman at Blue Nile.

Vadon also plans to hold the chairman role at the new startup, with the CEO responsibilities being held by former Blue Nile executive Darrell Cavens. During his 8-year tenure at Blue Nile, Cavens led the technology and marketing teams.

Vadon said he came up with the idea for the new online retail business a few months ago, and shortly thereafter started kicking around the concept with Cavens. They later showed the business idea to Levitan who got excited about the prospects.

Vadon wouldn't budge when pressed to share more details about what the 5-person startup is building, saying only that it is a "niche online commerce idea." That -- of course -- is also the essence of Blue Nile which hasn't strayed too far from its focus of selling jewelry over the Internet.

Vadon remains a very active chairman at Blue Nile, and he said that the the new company will in no way overlap with the online jewelry business he co-founded in 1999.

But the 39-year-old entrepreneur said he will certainly apply some lessons from Blue Nile -- which survived the dot-com bust and last year posted revenue of $295 million -- to the new startup.

"If you've done it before, it is just so much easier. It is so much faster, because you know how to do everything," said Vadon. "Going through the startup process 10 years after you did it the first time, it is a hell of a lot easier."

One might think that all of the good ideas have been taken in the online retailing segment, especially as Amazon.com has increased its footprint over the years. But Vadon, for one, still thinks there's plenty of opportunity.

In his view, American consumers are just starting to get more comfortable with buying goods and services online.

"They have kind of caught up to the innovation that was happening in the early days," he said. "We are at the point where things that are a little more innovative and creative are starting to work as consumers are catching up with it."

Vadon said part of the appeal of the new startup is that he doesn't have to run it, instead focusing on the bigger picture strategy and product direction.

"I love the creative process of startups," he said."My brain is kind of an entrepreneurial brain. I am always looking at things, and thinking there is a better way to do them."

John Cook is co-founder of TechFlash. Follow on Twitter @johnhcook.