Innovation. Nations. Kingdom.
INK Investments provides a platform for impact investors & donors to sow into next generation kingdom builders in software infrastructure, fintech, banking, education, media, communication & energy products.
Kingdom Ecosystem of Companies Thriving on Disruption and Growth
In order to build sustainable enterprises post-COVID consider the problems and challenges that the current economic environment is posing. It is necessary to have an effective response to rapid globalization and digitalization efforts. There are several infrastructure issues in a post-COVID world. We must build the right companies, communities, and environments that bring in right solutions to flourish in the post-recovery world.
Kingdom Impact is measured in leadership of companies and their involvement to intentionally participate in God’s transformational work in the lives of employees, vendors, and customers while creating sustainable value. We do this by identifying entrepreneurs who creatively demonstrate their faith while being a solution provider in their respective communities and industries with business practices that glorify God. They make impact in the lives of clients, employees, and community from Monday to Friday
Strategy & Execution
Great leadership execute well. A company with a great kingdom impact can still fail if the sustainability factors and financial merits are unachievable. The deals that are structured well and the ones that have a great executive team are more likely to succeed than the ones who do not know how to run a venture even if it has a great cause. Teams with industry-leading execution, integrity, transparency are some factors that make any venture successful that wants to make a lasting impact. Such leadership need to develop a similar work culture as well.
By investing in a diversified portfolio of companies from early-stage technology companies to mature companies, from agriculture and economic development ventures to energy products, we balance financial returns against the transformational impact in culture and communities. The need of investors seeking to maximize risk-adjusted financial return and the need to balance with their long-term financial goals, we identify kingdom impact companies that generate financial capital, good performance and qualified teams to run kingdom-based enterprises.
Right product + Right business model+ Transformational value=Sustainable enterprise+ Financial returns+ Kingdom impact
Investing capital to make socio-economic-spiritual impact through kingdom-based innovative enterprises
The Current Monetary & Banking System
Out of the total 7.6 billion people today, a whopping 7 billion people still live to meet sustenance on a day to day basis. Despite all the technological and financial advancements of today, something is drastically wrong with the “economic prosperity” picture today. Governments and international monetary organizations such as the World Bank & IMF have tried different policiesfor decades experimenting with economic solutions. Yet the problem remains the same.
IMF recorded 151 banking crises, 236 currency crises, and 74 sovereign crises-a total of 501 systemic crises** in the world between 1970 and 2017.
The post-COVID recovery efforts from macro level has been the same policies printing more money by governments putting more load on already debt-ridden nations which eventually make national currencies increasingly unstable. More free money in the system without proportional economic growth leads to rising inflation.
**A systemic crisis is the combination of a bank, monetary and government crisis at the same time.
6P-Building Blocks of Portfolio Companies
Based on a foundation of God’s promises
Has a strong company culture around purpose.
People precedes profits.
Productivity through ingenuity & quality
Preserve nature’s economy
Consider profits as surplus management
INK Investments measures the influence of the kingdom companies on the culture and society based on the eight categories above. They are Education, Economy & Banking, Science & Technology, Healthcare, Family, Government, Arts & Entertainment, and Media. These sectors influence the culture of nations in general. In order to make a positive impact on the culture, kingdom enterprises need to lead the charge in social upliftment, community transformation and the discipling of nations aka the Great Commission.
SaaS companies provide software infrastructure as a service to consumers and businesses. SaaS stands for Software as a Service which also includes platform, infrastructure and other software services that is made available on demand for companies to create healthy local economies again.
SaaS companies provide investors the opportunity to benefit from ongoing secular growth trends, servicing enterprise infrastructure on the Cloud, Consumerization of IT tailor-made for community needs, and the rise of the subscription economy. Furthermore, creating a recurring revenue for investors as Saas models have a stable, predictable, high margin and low business risk pricing model.
Information and Communication
We are living in an age where information has never been so widely accessible as it is today. As a result, it is increasingly evident that a few corporations and governments have also taken controlling role in the freedom of speech of daily citizens. Information and communication that vary from the mainstream ideologies, especially Biblical worldview have become marginalized. Goodwill missions and faith-based initiatives is forced to find alternatives and overcome challenges to fully embrace this change of technological landscape. There needs to be platforms harnessing the benefits of IT to bring socioeconomic changes and upliftment of communities worldwide to serve people of all cultures and races. The Bible is clear that God so loved the world and not a particular ethnicity or social class of people.
Banking and Fintech
The information and communication piece in building sustainable infrastructure is important as the transactional piece that brings economic benefit to communities. The role of banking, ecommerce and economic infrastructure makes the value of service and its exchange tangible. There is a growing trend in the recent IPOs of companies that is mostly in the IT sector. The sharing economy model that is facilitated by companies like Uber, AirBnb had a disruptive way of doing business compared to the traditional taxi and hotel booking industry. Fintech sector deals with various ways of transacting values traditionally done through banks and financial institutions. Besides money anything that is bankable including various types of assets can help thriving economies.
INK Investments is about nurturing companies that are doing good while doing well. Our overall strategy is to invest in strong enterprises with reliable revenue and good impact.
INK Investments has built-in capabilities to 1)preserve capital 2)appreciate in times of uncertainty and inflation and 3) provide fixed income revenue streams.
Our market-rate return expectations for PE investments are above the industry average through returns concentrated in industries conducive to high growth and rapid scaling as in information technology with the objective to exit after 4-6 years.
Investment Committee evaluates the enterprise’s fundamentals including the market opportunity, management team, and business model, revenue reliability and social contribution. Also uses comparable data within the industry and market sectors.
Scalability factor is the measure of growth that has a significant advantage to the level of need and size of the target population.
INK Investments as a form of diversification and hedge against economic uncertainty also invest in entities that innovate and produce basic sustenance goods.
In special cases, there is also a charitable bucket in a donor advised fund or private foundation.
The Private Equity Fund is a close-end fund investing in early startups based on fundamental bucket with a lock-up period of minimum 12 months and a 30 to 90 day notice period. When a great private equity deal comes along, it is not always easy to get into the deal especially in kingdom impact projects with financial returns. Through our broad source of expertise, we help clients vet, make, and manage private investments.
Private debt funds are low-risk investment with diversification benefits and a stable investment opportunity, especially within a multi-asset, diversified portfolio. Hedging strategies can play an important role in the financial risk and return profile of private debt. Leverage strategies also play a distinct role in impact investments; with portfolio yields and total expenses on par between levered and unlevered funds, the benefits of leverage would seem to outweigh the costs.
With secondary markets we seek to manage risk with an appropriate asset allocation. Primarily the investment selection has an emphasis on enterprises instead of asset classes. By investing in robust enterprises, the goal is to perform reliably for the people and communities that we are dedicated to serve.
There is a great harvest coming as a result of shaking. The remnant needs a new economic, communication and energy infrastructure outside the current environment.
Socialist egalitarianism is a concocted reality. It may sound great theoretically nonetheless remains a make-believe concept after many economists have sincerely tried different forms of it in the past decades. After two centuries since Karl Marx many economists and scientists still don’t want to give up on their socialist experiments. The Bible recognizes the reality of economic poverty. There were many poor people during Jesus’s times and still today. Being rich and poor insists that each person be treated with dignity and justice especially in moments when a person’s poverty is most evident (Deu. 15:11). Kingdom economy is neither capitalism or socialism. Its focus is to bring fruits of reconciliation to individuals and communities through a biblical-based economy.
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