Value Purpose Investors Amsterdam

INVESTORS

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.


WILL TO MEANING

Profit and impact go hand in hand in the early stages of a company as they are both equally important to create a sustainable business. But differently from a classical money focussed business model, in case of a business model focussed on purpose, at the moment the business hits a certain pre-set profit treshhold we focus on increasing our impact instead of creating more profit.

Value Purpose - Impact Purpose Graph
Value & Purpose invest mentors

INVESTMENT METHOD

“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.

1. Each Fund – One investment

As we look for an alignment of incentives along the entire shared value chain. By setting up one fund per investment we create.

2. Selection of Co- investors

We believe that in the early stages, time and network are more important than money for the success of the company.

3. Active participation

Depending on the stage of the company’s lifecycle we help create sustainable shared value and maximum impact for a minimum.

FAQ

  • 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.

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