Christian Venture Capital
Investing through Christian venture capital can be a way to combine financial growth with deep held faith. These investors will usually come on board in the beginning stages of a new company's development and are hoping to see a profit. Organizations that have more faith based objectives can also present very unique needs. Capitalists who wish to help worthy ventures grow and prosper will seek out such faith based groups with a desire to extend a helping hand. That helping hand may take one of any number of forms including free consulting services, guidance in management concerns, as well as financial backing. Groups receiving this capital will need to meet certain criteria. In most cases, this criteria will involve some time of missionary goals or a desire to further the Kingdom of God. In many cases, such organizations would never come to fruition without the help of an investment of Christian venture capital. Some investors see their contributions as donations. Financial returns are not always a priority and some capitalists do not expect to make any kind of economic gain by investing in these organizations. A simple belief in the calling of God to ministry may be the main motivating factor for these investing agencies. The idea of giving a needed leg up to worthy and God centered causes is the central goal of these patrons. With a hope for establishing a solid, stable, and financially sound philanthropic or missionary related organization, venture capitalists can make a huge difference in the beginning stages as ministries attempt to gain a foothold.
If a missionary organization exists in a foreign country, obtaining needed financing can be very difficult. Traditional banks and other lenders are not always receptive to the idea of providing funds for overseas concerns, particularly in countries that are considered economically disadvantaged. A provider of Christian venture capital can help organizations deal with this problem, particularly if the missions organization is located in a third world country. In addition to financial help, many organizations will also provide tangible aide in the form of volunteers who travel to the mission itself to offer their services and talents. Donations can also come in the form of small contributions that are provided by churches and individuals and accumulated over time until enough money is raised. In what ever form it takes, such aide and backing is both needed an welcomed by Christian organizations all over the world. Since ongoing support is usually needed, some providers of Christian venture capital will commit to ongoing donations that may come in the form of a monthly contribution. In other situations, the desire is to simply get a faith centered organization off the ground. Support may come in the form of business advice and financial baking in the initial stages of a new venture. Once the company is off the ground, the investors may move on to help another worthy cause.
An understanding of just how such investing can work is important whether investments come as Christian venture capital or in some other form. In some cases, there may be higher risks associated with this type of investment, but there may also be a higher potential for profit. Traditional investors will be looking for organizations that seem to have a great earning potential. Christian investors are looking for potential as well, but this potential may have less of a material focus. If a ministry related venture seems to have a huge potential for spiritual growth and Godly contribution to the community at large, then that organization might look very attractive to any one who is seeking to invest. Many of these ministries are not seen as a good risk by traditional banks and lenders. But since faith based investors have a different set of priorities, they may see an entirely different type of potential in the ministries and organizations that they contribute to. Another way that traditional and faith based investors differ in in the kind of return that is expected. Traditional investors hope to earn a profit, sometimes a substantial one, off of their investment. Investors who provide Christian venture capital are rewarded more by the ministry related success that the receiving organization achieves. For both traditional and faith based investors, a limited partnership is usually the rule, regardless of the size of any contributions.
In the business world, there are financial backers who function with a certain amount of faith, in ways that are somewhat similar to those who contribute Christian venture capital. These investors, sometimes called angel investors, are entrepreneurs who look for opportunities to get in on the ground floor of business opportunities that will be extremely profitable in the long run. Finding financing of this nature can meet important needs for struggling start up businesses. The Bible addresses the hopes and expectations of those in need. For the needy shall not always be forgotten: the expectation of the poor shall not perish for ever. (Psalm 9:18)
When approaching investors, whether they are traditional entrepreneurs or those with Christian venture capital, it is always wise to present a polished image. When making a pitch to potential investors, there are certain things to keep in mind. A succinct and compelling explanation of the goals of the organization is crucial. Including a few personal motivations can be helpful as well. However, a ministry related venture will always want to function in a professional way. Faith based companies and ministries should not assume that anything less than a professional presentation and attitude is required.