Kingdom Venture Partners, L.P.
The objective of the Partnership is to achieve significant capital
primarily through selective investments in private
companies. The Partnership may
also invest a minority of its
capital in microcap public companies.
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The Partnership will invest in two types of entities—kingdom companies and
kingdom projects. Kingdom companies and projects are born out of a vision or
a dream from God and their visionary leaders believe they are "called" by God
to fulfill a divine mission or purpose. Kingdom companies are focused primarily on advancing the kingdom of God on earth and are others-oriented as opposed to self-oriented. That is, kingdom entrepreneurs and executives are not simply or solely focused on creating wealth for themselves and their families but are focused on establishing the Kingdom of God in their workplace and serving their employees, customers and clients, suppliers, investors and shareholders, and other constituencies with excellence and integrity. There are at least seven types of capital—economic, social, spiritual, knowledge, relationship, creative, and political—and kingdom companies seek to leverage multiple types of capital to create multiple bottom lines for maximum kingdom impact. Kingdom executives operate on revelation and information, adding faith to facts, with strategy being a key component. Kingdom companies are also focused on dominion; that is, they are called to be influencers and thought leaders, salt, leaven and light, in their industry or economic sector or geographic region by applying kingdom
The Partnership is led by Dr. Bruce Cook and Rob Moss (the "Principals")
whose experience, networks, operations and private equity backgrounds, along with their
kingdom focus and access to high quality deal flow, separate it from other private
equity funds. Through the Principals' extensive networks, they see a large volume of
quality investment opportunities each year, the majority of which are seeking between
$500,000 and $5,000,000 in financing. In order to leverage this wealth of strategic
opportunities, the Principals are raising an inaugural fund, Kingdom Venture Partners,
L.P. The Partnership will proactively screen and refer investment opportunities from
its own network of relationships in the investment community and will actively
participate (lead, co-lead and/or co-invest) with angel groups, venture capital
and private equity firms, merchant and investment banks, corporations, money and
wealth managers, family and multi-family offices, professional service providers,
serial entrepreneurs, strategic investors and institutional investors, advisors and
The Partnership will pursue an investment strategy that can best be
characterized as opportunistic, strategic and synergistic. The Partnership will
seek to invest in direct investment opportunities with Portfolio Companies, normally
targeted for opportunities at an emerging or intermediate stage of
growth (typically Series A, B or C rounds of financing), with material revenues,
attractive and sustainable margins, competitive advantage, barriers to entry,
intellectual property, scalable potential to increase market share, defined exit
strategies, and/or diversification and/or synergy with existing Portfolio Companies.
Appropriate levels of capital reserves will be maintained for possible or
planned follow-on rounds in Portfolio Companies.
The Principals' and Advisory Board's breadth and depth of experience
and extensive network of relationships will afford the Partnership the opportunity
to review an extensive flow of funding transactions each year. The Partnership will
leverage its relationships with U.S. investment banking and private equity firms and
the deals that they screen and lead-which frequently offer smaller co-investors an
opportunity for smaller "top-off," "round-out" or "fill-in" amounts-and its own
proprietary flow of venture capital deals from its national network of advisors,
universities, banks, angel groups, venture capital firms, entrepreneurs, law firms,
money managers, family offices, service providers and members of the Big Four
accounting firms. The Partnership will consider investments on a national basis.
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- The Management Team. This is the central consideration for every investment. The management team must be capable of articulating and achieving the vision they have for their company. Seasoned serial entrepreneurs and executives with proven track records and the scars and maturity to go with them are preferred targets of investment versus novices and neophytes. In addition, management team members should model and demonstrate in some measure or to some degree integrity, ethics, sound judgment, maturity and wisdom, so that there is a solid foundation from which to build a sustainable and healthy corporate culture. Critical reasoning skills, the ability to communicate clearly and precisely, and the ability to function as a team and align their interests with investors are also deemed essential.
- The Market. Large (minimum $1 billion in annual revenues/sales globally) and growing (CAGH) markets with potential and strong likelihood of the Company's ability to increase market share during the investment holding period. Niche strategies, products and services are preferred that can dominate their niche(s). Prefer niches where no "800 pound gorilla" exists but that is not always fatal if clear differentiation exists.
- The Business Model. Companies must have a business plan and attending due diligence materials of sufficient quality, depth and integrity to clearly demonstrate the viability of their business model and projected growth. The business model must be scalable and able to ramp quickly. Margins are large and sustainable.
- Existing revenue generation. The investment under consideration must be generating existing revenues with the reasonable prospect of significant growth in such revenues.
- At or Near Profitability or Breakeven. The business model, idea, concept, service or product must support the expectation of sustainable, ongoing profitable operations within a reasonable timeframe.
- Intellectual Property / Barriers to Entry. Companies should have filed or be in the process of filing patents, trademarks, servicemarks and/or copyrights, or have defensible "trade secrets" or other forms of competitive advantage that provide defensible and sustainable barriers to entry for some reasonable period of time.
- Exit Strategy. The Principals will seek investments that have several potential exit strategies available at attractive prices within two - five years of the initial investment, depending on the stage of development of the portfolio company. These exit strategies can include many forms such as refinancing, recapitalization, merger, spin-off, sale or initial public offering.
The Investment Manager intends to invest in existing businesses that have the greatest potential for rapid growth. Further, the Investment Manager will evaluate each opportunity using the following criteria as guides:
- Proven management.
- Clear exit path.
- Potential to achieve relatively high sustainable gross margins.
- Potential to achieve rapid growth within two to three years.
- Potential to achieve a sustainable competitive edge over existing competitors.
- Willingness to allow the Investment Manager input and influence over their direction and management.
- Potential for high return in the short term.
The investment approach and the past business experiences of the Principals in the provision of consulting and advisory services to a wide range of businesses and industries/sectors, and their familiarity with structuring venture capital and angel investments provide an excellent platform for successful venture investment with consequent value creation.
The Principals believe that many economic sectors continue to provide attractive opportunities for success with opportunity-driven advances in information technology, life sciences, telecommunications, healthcare, energy, banking, media, security, real estate and the Internet, among others. The diverse backgrounds, experiences, and extensive networks of the Principals mean that virtually all industries will be considered, including but not limited to the following:
- Financial Services
- Information Technology
- Life Sciences
- Media and Entertainment
- Medical Devices
- Minerals and Mining
- Life Sciences - Therapeutics and Diagnostics
- Real Estate
- Restaurant and Retail
- Information Services
- Mobile and Handheld Devices
- Wireless and Broadband Infrastructure
- Retail Franchises and Consumer Products
- Professional Service Providers
- Healthcare Services
- Electronic Commerce
- Networking Services and Equipment
- Software and Semiconductor
- Direct Response
Without the prior written consent of a majority-in-interest of the Members, no more than twenty percent (20%) of the fund capital commitments will be invested (including guarantees) in any single Portfolio Company or Investment Vehicle.
The Investment Manager believes that taking a proactive role in the decision making of the companies and businesses in which it invests can mitigate much of its risk. To that end, the Investment Manager will seek to obtain a Board seat or Observer Rights in as many of its Portfolio Companies as possible. The Investment Manager believes this investment philosophy will help to deliver superior returns.
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The Investment Manager will advance or reject investment opportunities at the following stages.
Stage 1. Deal Flow
The Principals and their affiliates believe they can generate significant quality deal flow resulting from their proprietary networks and strategic relationships.
Stage 2. Selection
The Investment Manager will evaluate investment opportunities that are consistent with the its investment criteria and move them through the following initial investigative process:
- Does the investment opportunity meet the Company's general investment criteria?
- Does the Company have a suitably qualified and motivated management team?
- Is there a high probability of business success and a suitable rate of return to the Company?
- Are the prospective portfolio company's products and industry highly promising?
- Can the company pass an in-depth due diligence examination?
- Can acceptable investment terms be reached?
- Does the prospective investment provide diversification and/or synergy with the existing portfolio?
The first step is to determine whether the investment meets the Fund's basic investment criteria, such as the type and amount of funding needed, the industry in which the company is operating and its particular product or service line. The second step involves preliminary background checks, reference checks, and interviews with management and selected customers. The third step involves an analysis of the company's financial condition, the effectiveness of its management and the potential risk and return to the Fund. The fourth and fifth steps will involve very detailed financial information and projections, meetings with management and site visits, market analysis, and reference and business report checks. The final step is negotiating the deal. In this step, the amount of funding and the method through which it will be provided will be decided, together with the Fund's expected rate of return on the investment.
Stage 3. Due Diligence
The Investment Manager will conduct a very thorough and comprehensive due diligence process to investigate the background or history of the company, the viability of their services or products, and the potential for their future success. It also includes legal due diligence and comprehensive management background checks.
Stage 4. Participation
The Investment Manager believes it can create significant value in each company in which it invests through active participation in the company's operation and strategy. Generally, this includes the appointment of a Principal to one or more seats on the company's board of directors. In addition to funding and Board representation, depending on the company's situation, the Investment Manager, through the Principals and their affiliates or service provider partners, can provide or arrange to have provided expertise, including turnaround management, operational assessment, crisis management, interim management, technology development, executive recruitment, and strategic planning and marketing. By taking a proactive role in the companies in which it invests, the Investment Manager believes it will have a better opportunity to control its success and meet its desired ROI and exit strategy.
Stage 5. Exit Strategy
At such point as the Investment Manager determines to be practical, it will attempt to have its Portfolio Companies revalued and further capitalized as necessary. The speed of this process depends on the successful accomplishment of certain "preconditions" consisting of accurate strategic management, efficient implementation and financial performance based upon implementation results. An exit process may occur in any number of ways, including, but not limited to, IPO, merger, acquisition, private investment, or venture capital. There is no assurance that any recapitalizations or exits can be completed and the failure of such would have a detrimental effect on the viability of the Portfolio Company and the Fund.
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