At some point, you will have a business venture that is forecast to have an attractive IRR but significant short-term losses. VMS Ventures allows your business to invest into these new initiatives and business ventures with minimal negative consequences for your profit and loss statement.
If the business venture is a success, then you will receive the right to invest in future financing rounds. This allows you to retain the upside of a high-growth venture investment while minimizing the early-stage risk typically involved. Once there is minimal risk, then your team can offer to acquire this business venture like any other acquisition. The above investment mechanism can also be used to make investments in external business ventures. This structure also allows your business unit to retain high potential employees, as they will still be connected to your team. These employees will be challenged in new ways and given equity compensation.
Entrepreneurial employees should also be interested in launching a business venture and partnering with the VMS fund. We insist on founders owning a significant equity stake in the new business venture. By eliminating unnecessary bureaucracy, the fund aims to let the founders build their business venture and team in their own way. This is also a chance for your employees to utilize their knowledge of a niche vertical market for their own business venture, Constellation Software and VMS Ventures focuses on building great enduring businesses. We do not sell our shares and want all investors to receive returns by building a great business and reaping the rewards from dividends.
Email firstname.lastname@example.org for questions or information! (All information stays between you and Karl).