Sequoia Capital and the 7 Deadly Sins

 Photo by  Aditya Chinchure  on  Unsplash

Photo by Aditya Chinchure on Unsplash

Article originally posted here by Eric J. Swanson

by Eric Swanson

Eric Swanson explores the unofficial investment thesis of Sequoia around the Seven Deadly Sins. He describes how building great products require creators to understand the deepest truths about people. Hear his thoughts below…

A few weeks ago my son, Jeff, mentioned in passing that Sequoia Capital didn’t invest in a startup company unless the founders could identify which of the 7 deadly sins the product or service was appealing to.  Their logic is simple: “We don’t want to invest in something people should want to do. We want to invest in things that people can’t stop doing.” We would do well to pay attention to Sequoia’s theology. As one of the top venture capital firms in the country, the companies they helped to launch[i] are collectively now worth over 20 percent of the NASDAQ stock exchange. Because they appeal to the 7 deadly sins doesn’t make them evil. Far from it. Since 2000, Sequoia has returned over $10 billion in stock and cash to non-profits and schools. They are not evil. They just understand human nature.

Read his whole article here on his blog!

What we can learn from Sequoia Capital and the 7 Deadly Sins

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Sermon On The Mount vs. Sermon On The Plain: Different Messages For Different Economies

 Image from original article

Image from original article

Article originally posted here by Townhall Finance

by Jerry Bowyer

As we have seen there were major differences between the Galilean political economy and that of Judea. This difference in economic base was partly due to providence as expressed in the geographical differences. According to the Lexham Geographic Commentary on the Gospels:

“Matthew 5:13–16; 6:25–33; 7:13, 24–27; 13:3–9, 24–30; Luke 15:11–15

Unlike the southern Central Hill Country, which is almost exclusively hard limestone (Cenomanian), Galilee is a mixture of hard (Cenomanian), soft (Eocene), and chalky (Senonian) limestones.

Matthew 5:13–16; 6:25–33; 7:13, 24–27; 13:3–9, 24–30; Luke 15:11–15

Unlike Judea and Samaria, which had limited areas to sow grain, Galilee possessed large valleys and plains.

(Alexander, V. H. (2016). The Words and Teachings of Jesus in the Context of Galilee. In B. J. Beitzel & K. A. Lyle (Eds.), Lexham Geographic Commentary on the Gospels (Mt 5:13–Lk 15:15). Bellingham, WA: Lexham Press.)

Lower Galilee (where Jesus lived and had his early ministry) had better farm land than upper Galilee (which was more mountainous and less prosperous) or than Samaria to the South. Flat land made both for better farming and also for more trade routes. Mountains are barriers to trade. They didn’t have gunpowder and could not blow the tops off of mountains or easily cut tunnels through them.

I argue that the differences in economic base should not be ignored when looking at the different ways in which Jesus talked about money in these different economic contexts; because he did, indeed, speak differently to Galileans about economic matters than he did to Judeans. One powerful way to demonstrate this is by looking at parallel sections of the Bible which are very similar, but not completely identical. There are often called ‘parallel passages’, but sometimes people use that phrase to refer to sections of the Bible which are talking about the same event at the same place and time, while others who use that phrase include in it passages which do not describe the same events, but rather similar events.

I’m using the phrase in that latter way: different events which have very similar messages. The Sermon on the Mount (starting in Matthew 5) and the Sermon on the Plain (starting in Luke 6) are so similar that those who wish to assault the veracity of the Scriptures try to use variations between them as proof of contradictions in the Bible. The detractors usually key in on the fact that one is reported to have happened on a mountain and the other is reported to have happened on a plain. But, in addition, there are differences in the actual content of his recorded remarks. For example, Luke’s Sermon on the Plain contains ‘woes’ against the wealthy. However, Matthew’s Sermon on the Mount does not.

Let’s look at the different economic contexts of the two sermons. First the Sermon on the Plain:

17 And he came down with them, and stood in the plain, and the company of his disciples, and a great multitude of people out of all Judaea and Jerusalem, and from the sea coast of Tyre and Sidon, which came to hear him, and to be healed of their diseases;

(Lk. 6:17 KJV)

We see that Jesus’ message was given in a context which centered on the capital region of Judea and its capital city, Jerusalem. There were people from Tyre and Sidon as well, which were major financial centers and which had some close financial ties with Jerusalem. For example, Tyre minted the Temple Shekel for the Herodians (which we will see was important tool of economic extraction from the people centering in its use in the temple system). It is extremely unlikely that Jesus gave the sermon in close physical proximity to Tyre and Sidon in the far North of the region. This would have been far afield from Jesus’ usual mission field. Far more likely is that Jesus was speaking near Jerusalem and that Tyreans and Sidonians were in Jerusalem for business reasons. For a rough analogy, imagine New Yorkers visiting the Washington, DC region, and stopping their negotiations to hear an itinerant preacher from flyover country.

However, even if you reject my conclusion about where the sermon was probably given, the Gospels are quite clear about to whom it was given. That’s the main point.

By contrast, the Sermon on the Mount was given to a different, far broader group of people centered in or near Galilee:

23 And Jesus was going about in all Galilee, teaching in their synagogues, and proclaiming the gospel of the kingdom, and healing every kind of disease and every kind of sickness among the people.

24 And the news about Him went out into all Syria; and they brought to Him all who were ill, taken with various diseases and pains, demoniacs, epileptics, paralytics; and He healed them.

25 And there followed him great multitudes of people from Galilee, and from Decapolis, and from Jerusalem, and from Judaea, and from beyond Jordan.

(Matt. 4:23-25 NAS)

So, the Sermon on the Mount was given to Galileans, Decapolites (Decapolinians?), Judeans (including Jerusalemites) and trans-Jordanians. This is a very broad audience, more than just a national audience. It’s hard to know where it occurred—probably someplace centrally located—but the important point is who was in the audience. It was made up of people from different types of regions with different political economies. Think of something more like a national television address than a regional speech on local TV in Washington DC with visiting business interests from New York.

So, we see that although the categories are not perfectly aligned, the different audiences for the two sermons correspond somewhat to the different political economies we’ve discussed. One centers in Judea, and the other has a broader audience which includes Galileans, with Jesus giving what appears to be one of his stock speeches (with some variations) in both places. It is a nearly perfect environment to test the thesis that Jesus varies his economic commentary depending on the political economy environment into which he is speaking.

First, let’s look at the very beginning of both speeches. Both start with the Beatitudes, but the first Beatitude has an interesting variation between the two versions.

The Sermon on the Mount begins:

KJV Matthew 5:1 And seeing the multitudes, he went up into a mountain: and when he was set, his disciples came unto him:

2 And he opened his mouth, and taught them, saying,

3 Blessed are the poor in spirit: for theirs is the kingdom of heaven.

(Matt. 4:25-5:3 KJV)

Whereas the Sermon on the Plain starts with:

20 And he lifted up his eyes on his disciples, and said, Blessed be ye poor: for yours is the kingdom of God. (Lk. 6:20 KJV)

The phrase ‘poor in spirit’ is generally considered to be less ‘in your face’ when it comes to confronting issues of economics. It is more malleable and more reconcilable with a spiritual, as opposed to socio-economic, focus. And it is given to the broad national audience which includes people from the more free-market system of Galilee and the likely more free-market system of the Decapolis, instead of just the residents of the capital city and environs.

But to the Judeans we have the blessing given to ‘the poor’, which denotes a specifically economic grouping (though connotations may suggest other social characteristics.) It is more ‘in your face.’ Preachers and polemicists who are focused on economic reform tend to default to this version of the first Beatitude – though mistakenly using it to argue for a more politicized, Judean-type, economic system – represented by the region from which the bulk of the audience was drawn.

Beyond the small variation in the first Beatitude, there is a much larger variation to consider, a section which is missing from one version and present in the other.

In the Sermon on the Plain, Jesus transitions directly from the end of the Beatitudes to a denunciation of the rich:

22 Blessed are ye, when men shall hate you, and when they shall separate you from their company, and shall reproach you, and cast out your name as evil, for the Son of man’s sake.

23 Rejoice ye in that day, and leap for joy: for, behold, your reward is great in heaven: for in the like manner did their fathers unto the prophets.

24 But woe unto you that are rich! for ye have received your consolation.

25 Woe unto you that are full! for ye shall hunger. Woe unto you that laugh now! for ye shall mourn and weep. (Lk. 6:25 KJV)

(Lk. 6:22-25 KJV)

But who is ‘you rich?’ It is the wealthy elite centered in the political capital of Israel, the Jerusalem elite and their cronies from the rest of Judea and Tyre and Sidon. Interesting that Jesus uses the 2nd person pronoun ‘you.’ He does not denounce the abstraction known as ‘the rich’; rather he specifies the rich to whom he is speaking, primarily the Judean rich.

The Sermon on the Mount, by contrast, moves right from the end of the Beatitudes to the Salt of the Earth, as he addresses a group which includes many of the salt of the earth in its midst, omitting the woes to the rich.

11 Blessed are ye, when men shall revile you, and persecute you, and shall say all manner of evil against you falsely, for my sake.

12 Rejoice, and be exceeding glad: for great is your reward in heaven: for so persecuted they the prophets which were before you. (No statement of woe towards the rich)

13 Ye are the salt of the earth: but if the salt have lost his savour, wherewith shall it be salted? it is thenceforth good for nothing, but to be cast out, and to be trodden under foot of men. (Matt. 5:11-13 KJV)

It is unlikely to the extreme that Jesus varies his speech when speaking to different groups from different economic environments in two ways which differ specifically in their economic content, by mere coincidence. Like any great speaker, he knew his audience and adapted his speech accordingly.

This will become even more apparent as we examine numerous other instances of how Jesus caters his messages pertaining to economic matters in response to the nuances of different economic environments and the different economic aspects of the occupations of the people he encounters in his travels.

Seven Intuitive Questions for an Investor

 Photo by  Ryoji Iwata  on  Unsplash

Photo by Ryoji Iwata on Unsplash

Article originally posted here by Eventide

by Eventide

How do we understand if a company is creating value for society? One way is to ask intuitive questions of the company—questions like “If you walked into a supply center, would you be proud of the quality of the product and working conditions?”

Listen as Hannah Cumming shares 7 intuitive questions to help investors evaluate a company’s ability to create value:

Should Christian Investors Risk Lower Returns to Invest Biblically?

Article originally posted here by Inspire

by Robert Netzly

The biblically responsible investing (BRI) movement is booming as Christian investors move billions of dollars each year to switch their portfolios into biblically responsible investments, seeking to avoid profiting from abortion drug manufacturers, adult entertainment distributors, LGBT activism, human trafficking and other immoral issues.

As the biblically responsible investing (BRI) movement continues to take Wall Street by storm, the question of performance routinely surfaces. Questions such as, “Will I have to sacrifice performance if I switch my portfolio to biblically responsible investing?” are natural, logical and very appropriate questions to ask. Perhaps it is because we are wired to assume that if we do the right thing we are going to suffer for it, the proverbial “good guys finish last” situation, or maybe because we are fearful that if we do something out of the ordinary, like biblically responsible investing, that we are taking a big risk by venturing outside of the perceived safety of the herd, but whatever the reason, investors and financial advisors are frequently tripped up by the question of performance, often even skeptical toward the growing amount of research data showing that good values and good returns are not mutually exclusive.

While one way to answer the concerns about performance is simply to point to the actual track record of biblically responsible investing funds, which you can research for free at inspireinsight.com, or to read the independent, academic research that analyzes the performance of biblically responsible investments relative to secular investments, which you can find on the research page at inspireinvesting.com, I want to address the performance question in a different light today, drawing from two passages in the New Testament.

Follow Me

Jesus had a unique way of calling people to follow Him. He just said, “follow me”. No cajoling, no convincing, no explaining, just a simple and authoritative call to follow. One of those encounters is the well-known story of Jesus calling His first disciples,

“While walking by the Sea of Galilee, he saw two brothers, Simon (who is called Peter) and Andrew his brother, casting a net into the sea, for they were fishermen. And he said to them, ‘Follow me, and I will make you fishers of men.’ Immediately they left their nets and followed him. And going on from there he saw two other brothers…and he called them. Immediately they left the boat and their father and followed him.” (Matthew 4:18-22)

Another famous story of Jesus calling a man to follow him is the story of the rich young ruler, who comes to Jesus asking what he needs to do to inherit eternal life. Jesus tells him to follow the ten commandments, to which the rich man replies “all of these I have kept since my youth” (umm, really?). Jesus’ following reply was not what the young ruler was expecting to hear,

“…He said to him, ‘One thing you still lack. Sell all that you have and distribute to the poor, and you will have treasure in heaven; and come, follow me.’ But when he heard these things, he became very sad, for he was extremely rich. Jesus, seeing that he had become sad, said, ‘How difficult it is for those who have wealth to enter the kingdom of God!’” (Luke 18:22-24)

In these two stories we find Jesus giving the call to leave what you have and follow Him, and two very different reactions to that call. The fishermen are called to leave their income, their livelihood and their business assets to follow Jesus, and their response is one of faith, “immediately they left their nets and followed him.” The rich young ruler is called to walk away from his earthly wealth and follow Jesus, and his reaction is one of sadness and disobedience.

Counting The Cost

Here is my point, sometimes (oftentimes?) Jesus calls people to make earthly sacrifices in order to follow Him by faith. Does Jesus call everyone to leave their business or sell all they have to follow Him? No, certainly not. But He does call some people to that, and if He calls you there can be no room for deliberation, only counting the cost and immediately following Him.

Has the Lord pricked your heart about investing with biblical values? If you researched at inspireinsight.com and discovered that you were actively profiting from abortions and adult entertainment, would that bother your conscience? I would submit to you that is the Lord calling you to pursue biblically responsible investing for His glory and your joy. I would then submit to you that the question of a hypothetical performance sacrifice is irrelevant, because if God is calling you to switch your investments to biblically responsible investing, it does not matter what the cost is. Our only option, and indeed our greatest joy, is immediate obedience.

Don’t get me wrong, I believe and have experienced that Christians are not required to accept lower investment returns in order to invest biblically responsibly. But even if that was the case, or even if it somehow became the case in the future, does it matter? Would we reject the call of God because we are unwilling to give up performance potential? Or would we immediately drop our investments and follow Him?

SOCAP Conference Panel on Faith-Driven Impact Investing by Robert Kim

 Photo by  NCF

Photo by NCF

— by Robert Kim

This October, I had an amazing opportunity to moderate a panel on faith-driven impact investing at SOCAP.  This was a special moment for me as this panel allowed me and the panelists to share about Jesus at one of the most prominent yet secular gatherings of impact investors and social entrepreneurs. 

Three panelists were Bryce Butler (Founder of Access Ventures, a private operating foundation committed to deploying 100% of its assets to impact investments), Gloria Nelund (Founder of TriLinc, an impact private debt fund that has deployed approximately $1 billion in emerging markets), and Todd Johnson (CEO of iPAR, an innovative impact reporting / analytics app that allows investors to monitor impact across asset classes).  I was incredibly encouraged and grateful for their enthusiastic “yes” to join this panel and share about the role their faith has played in shaping their impact investing journey.    

 

I’d like to share a few points from the panel:

1.  Understanding the purpose of capital and pursuing a healthy relationship with money is the first step towards a rewarding journey in impact investing.  Too often, our goals and behaviors are influenced by fear and greed that stem from idolizing money.  Truly embracing the perspective that money is just a tool liberates us to explore what money, and furthermore capitalism, can do other than simply meeting our own needs or, worse yet, feeding our insatiable greed to want more.  Such freedom allows us to use money as a resource to pursue the very calling God has equipped us for.  It enables us to creatively use all types of capital – philanthropic and investing – as a resource to benefit communities in need (physically and spiritually).  Convinced that all assets belong to God, Bryce is directing 100% of Access Ventures’ assets to pursue the foundation’s mission (not just the 5%, required by the U.S. government).  This model allows the foundation to catalyze a lot of the important work for communities in need, using both philanthropic and investing capital.  For example, Access Ventures uses its philanthropic capital to meet the immediate needs of a homeless community (e.g. food and clothing, etc.) in Louisville and uses the investment capital to invest in sustainable solutions that help prevent homelessness for families at risk (e.g. affordable housing). 

2.  Jesus’ love compels us to create new ideas and solutions to tackle some of the pressing societal needs.  For example, TriLinc has structured innovative investment vehicles and processes to give retail investors opportunities to make impact investments (impact investing has been and still is largely available to accredited investors only, so democratizing access to quality impact investments has always been a need in this industry).  Under Gloria’s leadership, TriLinc is changing the narrative that only the wealthy has the ability and opportunity to create impact through investments.  TriLinc is just one example – there are many more (e.g. a private equity firm has developed a process to help Christian entrepreneurs integrate their faith into the companies’ operations and culture.  Various Donor Advised Funds are ‘re-imagining’ the role of philanthropic capital to not only support non-profit organizations but also invest in faith-driven social entrepreneurs).  God’s love compels us to innovate and push the boundaries of existing paradigms for the sake of communities in need. 

3.  Lastly, our panel session touched upon the need to grow the faith-driven impact investing ecosystem.  While I am grateful for the opportunity to share about the Christian faith at SOCAP, the Gospel-influenced perspective has been largely missing in the impact investing conversations for the past 15+ years (I fully recognize that BAM and other Christian NGOs have been doing amazing mission-oriented work through micro finance and small businesses for decades.  Still, a majority of Christian investors and organizations have not been actively involved in shaping the impact investing industry). 

Fortunately, this is changing. 

More Christian investors – both individual investors and institutional organizations – are looking to deploy investment capital for financial, social, and spiritual returns.  Very exciting!

I’m excited for two reasons: for one, more capital will flow into sustainable mission-oriented companies that can help share the story of Jesus.  Secondly, Christian investors will have the opportunity to share the “why” behind their impact investing journey with peers in impact investing industry and share about the love of Christ.  

As we come together and prayerfully support the growth of this ecosystem, we will likely need to address some of the questions below (and many more!):

1. What is the definition of faith-driven impact investing?

2. How do we create a culture to embrace a diverse set of opinions and values while focusing on our common faith?

3. How do we maintain the spirit of sacrificial giving while pursuing market-rate financial returns in impact investments?

4. Is it wrong to generate market-rate financial returns through impact investments?  Should such a goal be encouraged or discouraged?  What are the pros and cons of each perspective?

5. How do we balance the need to evaluate and monitor impact while accepting the fact that spiritual impact is hard to measure?

6. What are some of the frameworks and processes that we can use from the impact investing industry to grow the faith-driven investing ecosystem?

 

While this ecosystem is relatively young, I’m encouraged to see some of my colleagues from forward-thinking organizations come together to collaborate and prayerfully lay the groundwork to help build up this ecosystem. 

The truth of the matter is..there is order of magnitude more capital in investing pool than in philanthropic pool.  Imagine the scale and depth of impact if an increasing share of the investing pool can be directed for good.  This is incredibly exciting.