#7 Venture Capital Funds: Fuel for the Movement
Several new venture capital funds are being organized to fill the funding needs of business as mission entrepreneurs around the world. As vital fuel to this growing movement, the development of these venture capital funds can be a major catalyst for kingdom companies in 2007.Tom Sudyk of the Global CEO Network recently surveyed some of the networks kingdom business owners. A survey at the last Global CEO indicated the funding needs of kingdom companies were, in over 60% of the cases, under $250,000. At a prior meeting an established kingdom venture fund based in Canada presented a summary of the nine projects they were involved in and the intentions of that growing fund. They currently invest in the $25,000 to $250,000 range and take an active role in the companies in which they invest.
The survey also found that a number of funds are interested in investments of $200,000 to $750,000 to established companies. Start-ups with experienced management and a commercial business plans were also found to have a high likelihood of being considered.
The development of these funds are key towards supporting the next generation of entrepreneurs in the business as mission movement. A key to that development will be recognizing the role they play as a venture capital fund and not as a foundation. The expectation of a return is key towards it development. It is also vitally important towards recognizing the role of commerce and sustainability in the business as mission movement. That's where the survey concluded that plans that are not of a commercial nature (donor dependent) or do not include qualified management would not be funded by kingdom business funds.
The Living Stones Foundation Charitable Trust is a tangible example of a group that is providing funding to kingdom based ventures. The trust provides "financial and strategic resources to projects that lead to self-sustaining Kingdom-building ministries". Special interest areas of the fund include start-ups in enterprise development, promotion of family values, and local, national and global transformation activities. The trust spreads its approximately $100 million in assets in the United States, Central and South America, Southeast Asia, Europe, Israel and the Middle East.
If anyone is aware of any developed business as mission funding sources or venture capital funds, please feel free to chime in.
