According to a McKinsey study, 90% of CEOs make decisions with regard to short-term quarterly reports rather than the long-term interest of the company. Purpose investors enable entrepreneurs to think long-term and to make investments that only pay off after quarters or even years.
Purpose Companies are especially interesting for investors who want to make evergreen investments and are not interested in a quick exit from the company they invest in. The impact of the investment is secured through a legally binding commitment to the principles of Steward-Ownership: Control rights remain within the company and profits primarily benefit the mission of the company.
Purpose Companies stand for an economy for society and the people and thus attract investors who are looking for alternatives beyond simplistic shareholder-value maximisation
Purpose Companies are finances in accordance with the following principles:
1. Purpose investors do not take voting rights or minority control rights, they trust in the ability of responsible, independent entrepreneurs
2. Purpose investors receive appropriate costs of capital which correspond to the riskiness of their investment.
Purpose Ventures supplies capital to some Purpose companies and connects Purpose companies to other purpose-driven investors.
Find out more about Purpose Ventures
Purpose at TEDx Zürich Nov 2017
Armin Steuernagel co-founder of Purpose proposes a new way to think about ownership at TEDx Zürich Nov 2017