The Promise Venture’s Post

Abundance AND impact? Yes, please! 🌳 Merging historical IRRs of 35% with social impact investing, our search fund is a creative, emergent and exciting way to shape the future of Canadian small business. The New York Times did a great piece on traditional search funds and the opportunities in this space. #regenerativeleadership #canadiansearch #canadiansmb #eta #impactinvesting

Dear first-gen wealth builder, There are lots of good wealth-building or business ideas out there. I'm sure you can be successful at any one of them. The cold hard truth though is when you have your hands in multiple pots, you're unlikely to achieve a lot of success in any of them. You can't run 10 different businesses and expect to hit it big. Double down on 1-2(MAX) ventures. Spend less than you make. Set up systems to save and invest automatically. Grow those 1-2 ventures into something you can sell or own and not operate. Focus is the name of the game.

We’re back with another edition of the Fox Ventures newsletter. This week’s note was brought to you by my friends at 401. 401 Financial is revolutionizing financial planning by being a family office in your pocket. They cater to the 25-45-year-old mostly DIY investor looking for a tech-driven, high-touch personalized experience. They manage your assets with you, not for you. Financial advice on your terms. That’s the 401 way. We continued our series with Benedikt Langer Advisor to The Sutton Firm. We focused on how family offices should conduct due diligence on their fund investments. Remember this is the beginning of a multi decade relationship so there is no need to rush. Find out who they are as a person and what their edge or contrarian views are. If you’re a general partner, remember this is not transactional, build the relationship and harvest it over time. F Partners Subscribe to get in in real time here: https://lnkd.in/ebHbSFFE #singlefamilyoffice #familyoffice #familyoffices #privatemarkets #advisory #advisor #vc #emergingmanagers #angelinvesting

How do you determine who are the right investors for your company? (part 2 of 2. In case you are looking for it, here is part one - https://lnkd.in/gFJKiXb8) In my last post, I talked about some things to think about when choosing the right GPs for your company. After you get a a good idea about which General Partner you want to work with, you'll want to consider the following points to make sure you have all your bases covered. • Understand partnership dynamics. Make sure that the GP supporting you actually has a say in the partnership. Are they a significant player? Have they done big investments in the past that have gone well? Can they make a decision or force one if necessary? Some people won't have this power — ask up front if they do so you understand where they're positioned in their partnership (also note - note all "Partners" are created equal. Make sure you are working with a General Partner who can sponsor a deal) • Be aware of fund lifecycles. If you take money from a fund that's near the end of its lifecycle or from partners who are preoccupied with raising their next fund, it could impact you later on. Ideally, the firm will be doing pro rata and super pro rata investments, which means they have enough capital to bridge you if necessary and/or lead subsequent rounds. Look for funds who are early in their specific vintage lifecycle or just raised a new fund, so you know they have a bunch of dry powder to support you as you build your company. • More investors = more champions. Find a balance. Having more investors means that you have more people out there singing your praises and rooting for your success — you never know who's going to help you with an intro to your next customer or investor. I’m not saying to go take checks from 1000 people and put them on your cap table, because each additional investor also means more to manage. But taking money from just one investor could end up being negative, especially if they don't invest the next round and you’re left with nobody. Find the right balance for you between these two extremes. What other kinds of things should you take into account when considering a potential relationship with an investor?

Are you on the hunt for accredited investors to boost your business or project? Learn effective strategies and tips for finding accredited investors who can help take your venture to new heights. #InvestorSearch #BusinessGrowth https://lnkd.in/gVxxTYHa

Fantastic session with Karen Grant, seasoned investor who founded Angel One, Northern Ontario Angels and Equation Angels, among others. Taylor McAuliffe collaborated with me to bring her presentation on Step by Step Due Diligence, via Brampton Angels, to life. Some key learnings: - When you're conducting due diligence, it's transformational, not adversarial. One of the objectives of conducting due diligence is to try to get to a quick no. -The most common due diligence pitfalls are hidden assumptions. The founders have hidden assumptions. The investors have hidden assumptions. You need to make sure that those things are clarified. - The product and solution are what investors need to pay attention to when evaluating a deal. The ability to quickly identify whether the product “is a painkiller or a vitamin,” is critical

Want to know what goes into an angel investing deal? Karen Grant takes you behind the scenes with Hessie Jones and Forbes. Investors are looking at your financials, product and solution, business plan, target milestones, and management team. What stands out for me is that it's a long term relationship. Make sure the offer and the investor are a fit for you.

Agree with Charlie here in Insider about how to invest. In fact, his approach is the Act III Holdings, LLC approach and has delivered a 40% internal rate of return for us. We start with evergreen funding (we almost never sell anything) and include founder-friendly (common not preferred) equity along with debt backed by our balance sheet and a mechanism for continuous capital. This frees the founder from needing to raise follow-on funding (capital raises should not be an annual event like a birthday). We further support our investments with world-class capabilities (like technology, strategy, research, operations, and real estate) that they’re able to request on a cost-plus basis as they scale. #venturecapital #privateequity #berkshirehathaway https://lnkd.in/eNZXUkiM

"There are some compelling reasons to entertain the preemptive round on occasion. You get to learn why people you like and respect will say No. This is a gift when you decide to run a real process so you can get ahead of the curve. Letting an inside investor (someone who is already on your cap table) that you like and already knows the status of the business is a great reason to consider it. Especially if the Partner is someone you deeply trust. This is the ideal scenario – it saves you time and you know you’re not working with a wildcard. Same could be said for a new investor that you have a long-standing, deep, and trusting relationship with. If these things are true, then it’s worth considering. Otherwise, in this market, be wary of someone trying to preempt your round." https://lnkd.in/g4RgHRu9