For us at Value & Purpose, building sustainable partnerships is the most important part of our business. We work closely with experts in their related fields who want to use their experience for purpose driven initiatives. In order to create longterm value we focus on measuring our success beyond the traditional KPI’s.
It is the combination of both creating present value and making meaningful impact that drive our business decisions. We believe by building new companies we will help to embed these principles in the core of their business models. Therefore this helps us to stay focussed on our desired outcomes and remain successful and relevant in the future.
We have taken ourselves out of the more traditional way of doing business and we have started our own investment firm. In this firm we have implemented a number of founding principles which guide us in our way of doing business as well in our decision making process. The so called “walk the talk” principle is very important to us and guides us trough life.
For your business to start and grow funding is needed and necessary. For instance building the investment deck and obtaining the relevant investments is part of our expertise and experience.
To create and follow a clear strategy experts and professionalism are both needed. At Value & Purpose we deliver this in combination with a focus on purpose and business principles.
We understand the importance and significance of reporting as it is in our DNA. It is our believe reporting should be on key performance indicators which report on value as well as purpose. A state of the art tool for this is in our portfolio.
How far you want go and how much you want to risk.
We strongly believe in the power of collaboration. In order to succeed in that we try to align the incentives of the people within the company as good as possible. We believe we can do that best when we engage in a full partnership. Therefore we search for equity investments were we will end up with at least 20% of outstanding shares (post-money) at the time of investment.
Of course, as full business partners and initial risktakers, we should share in the future profits. Our goal however is not to maximize profits. Our goal is to build companies that can sustain themselves over a long period of time by adding value to the lives of people that come into contact with our companies and by doing that also make them financially sustainable in the long term.
We strongly believe that we need to actively work together to make an investment the success it should be. By taking a seat in the board we are ourselves obligated to stay focused and informed. We are very cooperative and love working in high performance teams. Our goal is always to make the leadership team and business culture one that fits our founding principles.
We invest in real business ideas that fit our founding principles. We believe in organic growth. Driven by demand and not by supply. When you create a service or product which adds true value to peoples lives they will come for it.
We focus on increasing the chance of success by eliminating distractions from the value creating process (i.e. legal/finance). This is valuable for almost all companies we encounter. Our community, network and expertise lend best to these types of companies and founders.
Typically 4-6 weeks.
After our initial conversation, we will provide a strong indication of next steps within 14 days or less. This conversation is crucial for us as we decide quite quickly if the people within the firm and its culture fit our founding principles.
If there is a fit, we begin due diligence by asking you for your past financials (annually), current year financials (monthly) and pro forma statements for the next 5 years and personal, professional and customer references.
When there is no fit we will discuss with your leadership team what can be done to become a fit in the future. We can even help you find another investor that does fit your company should you want that kind of help.
Our investment has no maturity date, financial covenants and we do not require a personal guarantee. We can even become part of your leadership team if this could increase the chances of our success. We provide layers of support and community that truly helps your future business. We develop the business proposition together with your team and we will be there to maximize the changes for a successful implementation. And, as we are a small investment firm you are in contact with the partners from the start.
Our financial return model anchors on distributions from long term cashflow, not on rocketship rides. Our interest is in giving founders more control over their company and value creation process, not less. We focus all of our energy on helping our companies create value for all stakeholders which can accelerate profitable growth, not on raising their next round of funding.
