Many people tend to make the assumption that faith-based investing is simply the purchase of stocks that align with religious values. That could not be further from the truth. Faith-based investing is better described as value-aligned investing, and just like any other investment philosophy, it is designed to maximize returns. However, the difference is that it aims for returns that make a positive social impact in addition to capital. We sat down with Wes Lyons, General Partner of Eagle Venture Fund, to discuss how his firm is focused on creating unique and faith-driven investment strategies. Here are 3 ways a faith-based venture capital firm can help entrepreneurs create long-term social impact.
Starting the Start-Up
Start-ups are full of ‘firsts’. The first time they raise capital, the first time they build a team, the first time they form a board of directors, etc. Eagle Venture Fund has developed a course for first-time entrepreneurs called Eagle University to explain best practices of all the first-time experiences that are critical to building a foundation for long-term success and sustainability.
Servanthood to Support Success
While the main purpose of a venture capital firm is investing capital, capital is just the tip of the iceberg. A true redemptive investment also includes the tools an entrepreneur will need to support long-term success, allowing them access to an ecosystem of resources that can enhance their efficiency and improve productivity. Faith-driven venture investors create long-lasting impact by serving entrepreneurs to support the ongoing success of a business and it’s social impact.
Creating the Change You Want to See
Sometimes the perfect investment opportunity comes to you. Sometimes, you have to build it. Eagle Venture Labs was created to cultivate and launch new business ventures with a social impact. A key to success in the Venture Studio model is to bring in the right leader that believes in the vision just as strongly as the studio does. There is no business venture without an entrepreneur to take it forward.
The faith-based investing model has proven that aligning and incorporating faith-driven values into the foundation of a business does impact returns and its community positively. A significant key to success is in choosing the right entrepreneur and vision to invest in, then providing a true redemptive investment that includes not only capital but also everything the firm will need to produce significant returns and significant impact.