Value Purpose invests in new, purpose driven business ideas and inspirational people. We prefer to invest during the ‘early stages’ of these companies so can have enough influence on the essence of these companies’ cultures. We believe this is one of the most crucial success factors for any company and especially one in its early stages. Once a company has become part of the Value Purpose family, we do everything we can together with our partners to make it a success. Our joint focus is on the long term – we therefore invest without a predetermined ‘exit strategy’.
WE BELIEVE IN
“If something is important enough, even if the odds are against you, you should still do it”
– Elon Musk
“Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.”
– Albert Einstein
“I like friends who have independent minds because they tend to make you see problems from all angles”
– Nelson Mandela
THE BIG PICTURE
“The art of the deal” is, according to Value & Purpose, entering into a partnership that delivers sustainable value for all parties involved. We test this by looking at the proposal from all sides and see if we would have accepted the agreement from all sides of the table. We strive to set up long-term partnerships where all parties have the desire to be part of it for as long as possible. The collective positive energy that occurs from this is the foundation for sustainable shared value creation.
As we look for an alignment of incentives along the entire shared value chain. By setting up one fund per investment we create a singular focus and give the necessary attention to maximizing chances of success of the invested company.
We believe that in the early stages, time and network are more important than money for the success of the company. Therefore, we select our co-investors based on their passion for the vision and mission of the investment.
Depending on the stage of the company’s lifecycle we help create sustainable shared value and maximum impact for a minimum period of two years. From there we jointly decide what shall be the best partnership structure moving forward.
There is an element that is present in every organization in the world: people. We see these people as the biggest potential for success and give them shared goals and a purpose. By doing so, we gear their actions and beliefs in the direction of the desired objectives and outcomes, while in the meantime, improving team cooperation and people well-being. To do so we use our “founding principles” as a guide for ourselves and the teams towards the goals we agreed upon. These founding principles are at the backbone of what we do and what we believe in. In the end, it’s the success of the teams which makes the difference!
Big Hairy Audacious Goals (BHAG). This is the starting point for all important processes and projects; we have to dream big and then start small. Without limitation, we clearly determine and prioritize the wishes of the people in the organization and then start designing and implementing the first steps.
BUILDING THE NEW
The success of the plan during the implementation phase depends on knowledge, dedication and the right partners. Major changes are complicated and require the right amount of patience and decisiveness. We are happy to share responsibility for these steps and in doing so support a successful implementation – we “walk our talk”.
The period immediately after a successful implementation is the most crucial phase for the sustainability of the shared value that was created. Only when all active stakeholders have enough confidence that the long-term goals have been safeguarded do we phase out of the implementation process. This is then actively followed up by our Value & Purpose Support process.
How much do you invest?
How far you want go and how much you want to risk.
What are your terms?
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.
Do you take a board seat?
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.
What types of companies do you invest in?
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.
How do you add value to the business?
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.
How long does your investment process take?
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.
How are you different than a bank?
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.
How are you different than a VC?
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.