OUR DEAL TERMS ALIGN INTERESTS AND EXPECTATIONS
We establish deal terms and fund structures that align interests as well as growth and timing expectations with the entrepreneurs we back, avoiding practices that leverage our power solely for our advantage and innovating toward generosity and inclusion in venture economics. Whether in deal-by-deal terms or through new funds and alternative investment approaches, we create mutual clarity regarding the ramifications of the capital on the long-term health of the enterprise and its founders.
1. On significant investments, we employ a regular funding discernment process, bringing each opportunity to the Lord through prayer, fasting, or other spiritual practices that become an integral part of a personal or collective decision-making approach that we resolutely follow, even under pressure.
2. We design and discuss crystal-clear terms that even in complex arrangements eliminate surprises to any stakeholder (such as limiting multiples on participating preferred shares, super voting rights, etc.).
3. We contribute to a mutually healthy financial picture in each investment, limiting dilution to previous stakeholders, honoring previous rounds of financing, avoiding burdensome debt in the company, and aiming for generosity in failure modes (such as down rounds and liquidation).
4. We regularly bring to the Lord in prayer the leaders, teams, products, and priorities of the ventures we fund. We ask leaders to share non-financial ways in which we can support them, and we pair our funding with introductions to other funders, as well as favorable access to services, space, and other resources as a part of our terms where appropriate.
5. We explore financing options beyond equity and debt to better align with entrepreneurs’ vision and context. These might include revenue sharing, income or outcome-based financing, R&D grant capital with investment follow-on, special purpose vehicles, or evergreen investment fund structures that create broader time horizons for deals.
6. Within funds, deals, and portfolios, we design compensation structures that strategically align managers with other stakeholders, and even explore models that more broadly and generously share outcomes, such as “carry sharing communities” that allow venture founders, other involved parties, or charitable foundations to participate in the venture’s success.