bmt Venture Insights 2/23: The Responsibility of Venture Investing

In our view, being a responsible investor means believing that we owe something far beyond our capital commitment to the companies in which we are invested. It means we will strive and fight for their success while always acting with integrity. Classically, we contribute more than capital to our Investee-Partners by using our network and other resources to benefit them as much as possible. More specifically, responsible investing can also mean communicating clearly, transparently, and honestly with our valued co-investors and Investee-Partners and proactively informing them of our ability and willingness to participate in future fundraisings. Although some may argue that private investors have the right to view their investments simply in a transactional way, we strongly believe that, especially in the early stages, when companies are still in the process of finding their best path and each investor is of extreme importance, all investors should have some sense of additional commitment to further assist the companies in which they are invested. It is surely true that the best way for an investor to ensure a strong financial return in early-stage investments, where the bulk of value creation lies in the future, is to cooperatively contribute value to the company. The definite actions that an investor can take to contribute to their venture investments vary greatly depending on the company and investor. However, at a minimum, early-stage investors should have a willingness to open their network to the company and efficiently and correctly process all documentation/voting requirements without playing any unnecessary games. Importantly, being a responsible investor in a company does not mean that an investor agrees with all of management’s decisions or that valuable criticism is withheld. Exactly the opposite is true, because engagement is the prerequisite for constructive contribution, and engagement means sorting through the various initiatives and challenges with a discerning eye in order to assist the company in achieving its ultimate goals. In Thüringen we are extremely fortunate to have attracted private investors who understand investing is a two-way street. The nature of our high-tech B2B companies means that it is clear from the beginning of the relationship between company and investor that this is a marriage and not just a fling. This marriage takes diligent work from both sides, as exceptional corporate development and exponential investment returns are only attainable with contributions from all. We are grateful to have a clear mandate to be a responsible investor and we look forward to continuing to make mutually-beneficial matches between other like-minded investors and our outstanding Investee-Partners for the benefit of all involved. Your bm|t Team Der Beitrag bm|t Venture Insights 2/23: The Responsibility of Venture Investing erschien zuerst auf bm|t › next level funding.

Netz: venture capital | private equity - bm|t › next level funding
Aktualisiert: 19.6.2024

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