Rite Ventures was founded as a privately-owned investment company and we continue to operate and invest only using our own capital. Our journey started with small amount of saved and previously earned funds which we have invested carefully to grow Rite into what it is today. We have accomplished this by investing in great entrepreneurs and have supported them to ensure that their companies reach their full potential.
Along the way we have developed a few business and investment principles, which we do our best to follow:
1. We only invest using our own funds
Investing our own funds makes us independent from external stakeholders. And being independent enables us to be stable and reliable partners.
2. We focus on sectors we know well
We spend time ensuring that our operational, market, and strategic knowledge is always both hands-on and in-depth. We continuously try to make sure we understand the operational reality that our portfolio companies face every day.
3. We invest for the long-term
As long as the entrepreneurs have the energy and motivation to continue, and we think the company develops in the right direction, we have both the motivation and ability to continue being shareholders. If or when the entrepreneur wants to make an exit, we will follow that wish and make sure it is executed in the best way possible.
4. We primarily invest and act as minority owners
We believe this creates the best incentives for our partners to continue building a successful company. Our opinions on strategic and operational issues should be valued regardless of our voting rights – otherwise we have not built the necessary trust for a successful partnership.
5. We do not believe it has to be a choice between profit and growth
Sustainable competitive edge is most often built when superior customer value is created under financial constraint.
6. We prefer a low profile
Engaging in media coverage, panels or conferences dilutes our time and focus which is solely on value creation. We avoid companies in which the entrepreneurs are focused on building their personal brand value – the best business builders focus on their business and customers.
7. We believe great entrepreneurs come from all walks of life
We see no correlation between education and great entrepreneurs.
8. We make sure there is a long-term competitive advantage in place for every company
We avoid quick flips. We are careful with turn-arounds. Difficult situations usually get more difficult.
9. We believe sustainable value is created by building an operationally strong company with organic revenue and earnings growth
We are careful with debt and avoid extensive financial engineering. Sometimes a merger, acquisition or leverage can be useful, but it should not be the primary building blocks of a successful value creation story.