Biblically Responsible Investment Movement is Exploding

Image by Aaron Burden

Image by Aaron Burden

This article was originally published here.

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by Robert Netzly

The Biblically Responsible Investing (BRI) movement is exploding — in a good way.

Demand from Christian investors desiring to align their portfolios to support biblical values is powering asset growth among fund companies and advisory firms focused on providing biblically responsible investment solutions.

Earlier this year, Ambassador Advisors, a $520 million advisory firm serving the Christian investor market, made headlines by converting all of their assets under management to align with biblically responsible investing best practices, recognizing that investors want alignment between their investments and their deeply held values and beliefs.

As Ambassador Advisors’ Chief Investment Officer, Christopher Coolidge, CFA®, puts it, “We believe you shouldn’t have to compromise performance to live your values. There’s more to making money than just making money. Biblically responsible investing allows Christians to apply their stewardship and the belief that all money is God’s money, not only for budgeting and giving purposes, but all the way through investing and legacy planning.”

My own firm, Inspire Investing, which is entirely dedicated to investing in the most inspiring, biblically aligned companies in the world, has increased assets under management from $250 million to over $400 million since the beginning of the year. We were also nominated as a finalist for “Best Thematic ETF of the Year” award in the annual ETF.com Awards.

God is at work in the hearts and portfolios of His people, and all glory goes to Him…

Read the full article at Christian Post.

Begin with the End in Mind

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Watch Martin Myers, Cofounder and CEO of Trelus, outline how to approach external growth capital options.

Where WeWork Went Wrong and What We Can Learn from It

Where WeWork Went Wrong and What We Can Learn from It

This article was originally published here.
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One of the most anticipated IPO’s of 2019 hit enormous roadblocks and it serves as a powerful case study for us. In private fundraising rounds, Adam Nuemann, WeWork’s CEO, enjoyed incredible favor with investors. That favor finally ran out as skeptical Wall Street investors found flaws in the company’s governance, valuation, business model, and expense structure. This pushback from investors caused WeWork’s parent company to withdraw its planned IPO.

The company, whose main business involves renting real estate for co-working spaces, had been valued at $47 billion earlier this year but recently revised that to around $10 Billion in order to court IPO investors. Investors also pressured WeWork to rewind a series of alleged conflict-of-interest transactions with its co-Founder, Adam Nuemann. Plus Mr. Nuemann had to give up some of his personal voting power. All of this wasn’t enough to alleviate concerns. The Wall Street Journal explains, “Investors have also been unnerved by deepening losses at the company, which last year bled $1.61 billion in red ink—nearly equal to its revenue of $1.82 billion.” WeWork’s woes provide a great case study in investor expectations.

Here’s what WeWork did NOT have, but you should if you hope to raise money from impact investors.

FINANCIAL TERMS THAT ALLOW EVERYONE TO WIN

WeWork has raised $12.8 billion privately and if it had gone ahead with its planned IPO at the relatively low $10 billion valuations, investors from previous rounds may have suffered. Writing about WeWork, Bloomberg notes:

“WeWork has become an extreme example of the excesses afforded to technology entrepreneurs in the era of unicorns — startups valued at $1 billion or more. Adam Neumann, WeWork’s co-founder and chief executive officer, was able to raise billions of dollars at astronomical valuations and spend freely, while retaining effective control over operations through special classes of stock.”

Many critics of WeWork have pointed out that the primary person who stood to profit from the company’s IPO was its CEO.

While this serves as a clear example of what NOT to do, finding the “right” answer requires more finesse. When it comes to faith-driven or impact investing, there isn’t a specific set of investment terms that is right for every company. Investors may choose to take a lower financial return if the expected impact is high. For example, a friend of ours provided a zero-interest loan to charity so it could acquire new land in Uganda to expand its Christian school. When asked why he would make such a risky investment with no interest, our friend replied: “the last time I did this I got nothing back. It was called a grant. If I could get even a portion of the capital back to give away again, that would be a win.” On the other side of the financial return spectrum, companies with strong economics may not provide social/spiritual benefit as strong as a charity but are worthy of impact investing capital. Their profits can fuel further giving for investors.

There isn’t a “right” answer; the goal is to keep pushing toward sustainable impact in the context of the specific business or charity.

For more guidance on fundraising for your company, check out great resources from Y Combinator:

GOOD GOVERNANCE

A strong and healthy board can provide important strategic direction, industry expertise or connections, and accountability. This was all missing from WeWork, as the WSJ explains:

“There are also concerns about the firm’s management and corporate governance standards. WeWork’s CEO and co-founder, Adam Neumann, has taken $700m out of the company before the IPO. He also owns properties that WeWork rents, a potential conflict of interest.”

A strong board could have kept We Work from conflicts of interest of this magnitude and might have allowed the IPO to stay on track.

It’s not uncommon for startups—or even older, closely-held businesses—to lack a strong board governance structure. It’s much easier to get going with just the entrepreneur in charge, but potential investors will likely expect more. Some may want the right to elect a board member or may simply insist on changes to the governing documents to provide for independent (i.e., not the CEO or her family) board members.

Kauffman Foundation offers a super practical, comprehensive resource for anyone looking for more help on this topic. Download it from their website.

1.435 Billion to 1: the Miraculous Origins of CEF

1.435 Billion to 1: the Miraculous Origins of CEF

Photo by Adi Constantin on Unsplash

Photo by Adi Constantin on Unsplash

by Chuck Bentley

The late Rob Moll (1977-2019), a writer and former editor at Christianity Today, was a friend of mine. Our friendship began when his life impacted my life in a very unexpected way, via an article he wrote for the Wall Street Journal, Want More Growth in China? Have Faith. (August 8, 2008). (link)

While I typically scan the Wall Street Journal for business and economic news on a frequent basis, I had never looked for or expected to find an article that would directly impact my life as a Christian. In his article, Rob interviews a Chinese economist whose Americanized name is Dr. Peter Zhao. As a rising star in the Communist Party and an avowed atheist, Dr. Zhao was commissioned to do an academic study to determine the reason why America has the largest and most powerful economy in the history of the world. 

He reported that the secret to America’s phenomenal economic engine was the Christian Church. He carefully documented some of the elements of the faith that are missing in Chinese culture such as a tireless work ethic, honesty, suppression of corruption, a motivation for excellence, generosity and the “spirit of creativity” which comes from worshipping a Creator.  He very perceptively noted that things were invented or created in America but only made in China; to reverse that, the Chinese would need to worship a Creator. He reported that there are rice shops on every corner in China, but America appears to have a church on every corner that feeds the mind and soul.

The response to Dr. Zhao’s report was not warm – the country wanted a “market economy” but without the Church. How could China copy the system but not adopt the beliefs that make the system possible?  Dr. Zhao persisted in his research, writing a paper investigating market economies without the Church and market economies with the Church.  His paper confirmed that the Church has been the key driver behind the largest economies in the modern world and are essential for long term sustainability to avoid the fatal flaws of greed, corruption, lack of trust and limited innovation.  It became one of the most widely read economic articles in China and catapulted Dr. Zhao into the forefront of contrarian thinkers in their society. 

1.435 Billion to One 

The research and remarkable journey of Dr. Zhao captivated my own heart. I agreed with his findings and was gripped by his honesty and courage. I began to pray for him and learn all that I could, hoping that he would survive his bold reporting of the profound and simple truth that God’s truth guides and shapes our economic progress. 

The rest of the story could only have been written by God Himself. This sincere atheist who explored the data with an open mind and heart was so touched by what he saw in America and what he learned about the elements of the Christian faith that he bought a Bible and began to read it. It was not long after his research was published that he professed his personal belief in the Lord Jesus Christ. By the time he was interviewed by Rob Moll, he was a devout Believer. 

Two years after reading the Wall Street Journal article, I attended a conference in Orlando, Florida and was seated in a bland ballroom packed with people with a common interest in improving Christian generosity.  I noticed that the table of ten next to me were all Chinese men who were listening on headphones as someone translated from English to Mandarin. At the first break, I introduced myself and asked the translator if she knew or had ever heard of Dr. Peter Zhao. She seemed puzzled, so I explained who he was and how I read of his remarkable story and tried to learn all that I could about him, hoping and praying for his survival and success but I had no idea what had happened to him since the article I read. 

She finally connected the dots and realized who I was so enthusiastically talking about since she did not know him as “Peter”. 

“Oh yes, I know Dr. Zhao. I am his personal secretary”, she said with a humble smile as she paused. 

“Really?! Oh, my…Please tell him that I so admire his work, his courage, his boldness, his message…Is he okay? How has he done since becoming a Christian? I would love to know everything I can about him…He is one of my heroes! Can you tell him for me?”  I finally stopped for a second to let her reply…

Her response: “Why don’t you tell him yourself…he is sitting right here at the table.” 

Cold chills covered my body as I looked at the men sitting within three feet of my table. She spoke in Mandarin and asked Dr. Zhao to come over and meet me. I could barely hold back my tears.  I had never been to China in my life. I had prayed for only one of the 1, 435,000,000 + Chinese people and here was that one – standing in front of me – one of my heroes –one of the most powerful leaders I had ever met. God seated us next to each other in a crowded conference room in America where we had the freedom to openly share with each other and begin an enduring friendship that would take us around the world teaching and training together on the power of God’s principles to transform personal and national economies. 

A Ripple Effect 

The point of my story is this: God’s Word has an incalculable and profoundly positive impact on individuals and a nation’s economy. 

Two things provide a snapshot of the health and future of a nation: the number of healthy Bible-believing churches and the number of entrepreneurs that are free to pursue their dream. Dr. Zhao was right, China needs God. But not just China; every Christian needs to understand they are redeemed by God to be “good economic actors” with the values, the character and creative spirit that edifies both the individual and the economic health of a nation. 

We need more like Dr. Peter Zhao.  That is why when we first launched the Christian Economic Forum in 2011 in Jackson Hole, Wyoming, my friend Peter was there with me. He continues to participate in our global events and has had an immeasurable impact on Christian business leaders inside and outside of China.

I have traveled to much of the world sharing this simple message. I have had the honor of teaching many times inside of China with my beloved friend Dr. Zhao. Neither of us plan to stop. This message is far too important. 

A modified version of this article was originally published at Patheos.com May 24, 2020.

Creating Wealth is Godly Work Too

Image by Riku Lu

Image by Riku Lu

This article was originally published here.

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by Hugh Whelchel

“Capitalism is an organized system to guarantee that greed becomes the primary force of our economic system and allows the few at the top to get very wealthy and has the rest of us riding around thinking we can be that way, too—if we just work hard enough, sell enough Tupperware and Amway products, we can get a pink Cadillac.”

So says film-maker and author Michael Moore of Roger & Meand Fahrenheit 9/11 fame. Ironically, Moore has become a multimillionaire condemning the system that has made his wealth possible.

Certainly, in today’s culture, there is a certain disdain for wealth. And while there are many examples of the misuse of power to create wealth and how wealth itself has caused much corruption and evil, the Bible has plenty to say about the positive aspects of wealth creation.

The Bible claims that the creation of wealth is both a godly gift and a command. It also tells us that wealth should be shared, but it cannot be shared if it is not created. Unfortunately, the biblical role of wealth creation is misunderstood in many churches today.

The Source of Both Wealth and the Ability to Create Wealth

But remember the Lord your God, for it is he who gives you the ability to produce wealth, and so confirms his covenant, which he swore to your ancestors, as it is today (Deut. 8:18).

In Deuteronomy 8:18, Moses tell us four important things about wealth creation:

First, he reminds us that it is the Lord God who gives us the ability to produce wealth. The very idea of wealth creation is ultimately rooted in God the creator and is underscored in Leviticus 25:23, and 1 Chronicles 29:11-12.

We read in the opening chapter of Genesis that God created us in his image, according to his likeness (Gen. 1:26) and gave humanity the role of sub-creators directing us to fill the earth with God’s images and to subdue the earth, making it an incredible place for these images to flourish (Gen.1:28). There is an expectation that we are to make something with the raw materials God has so abundantly given us.

God has given us an abundance of raw materials, but God retains ownership, establishing us as stewards of his creation (Ps. 50: 10-12). This is important because it reminds us that even the wealth that we produce through the ability he has given us belongs to him and must be used according to his desires.

Second, wealth production is a good thing designed to be a vehicle for biblical flourishing in God’s creation. In a paper on wealth creation written by the Lausaunne Movement and Business as Mission (BAM) Global, it states:

We believe that creating real wealth is what God desires from us: wealth that blesses families, communities, and countries. That blessing includes sharing faith and love, providing jobs that are meaningful and reflect the creativeness of our God. Building business for the long haul: sustainable and scalable.

Third, wealth production confirms the covenant given to Abraham and is repeated at least 28 times in the Old Testament where God states, “I will be their God, and they shall be My people.”

J.I. Packer writes that faithfulness within this covenant brings blessing:

Covenant faithfulness is the condition and means of receiving covenant benefits, and there is nothing arbitrary in that; for the blessings flow from the relationship, and human rebelliousness and unfaithfulness stop the flow by disrupting the relationship. Israel’s infidelity was constantly doing this throughout the Old Testament story, and the New Testament makes it plain that churches and Christians will lose blessings that would otherwise be theirs, should covenant fidelity be lacking in their lives.

Finally, in the larger context of this verse, we see that our work in the covenant, blessed by God, produces wealth. Throughout the book of Proverbs, we see a strong causal relationship between work and blessing (food, profit, leadership, other rewards) and how our work is to glorify God and serve the common good (Prov. 12:11, 14b, 24; 14:23).

Although wealth is a covenantal blessing, wealth accumulation is not the end God seeks and should not be viewed as directly linked to our level of faithfulness (the prosperity gospel). Wealth creation is about bringing greater flourishing in God’s creation—creating jobs, innovation, services that benefit those created in God’s image, or all mankind. Believers should see wealth-generating work as being redemptive, kingdom-focused, embodying the principle of shalom.

Some Wealth-Creation Guidelines Based on God’s Design and Desire for Creation

Last year, 30 Christians representing the business world, the church, and academia from 20 nations gathered and wrote what they called the “Wealth Creation Manifesto.” This is the best thing I have discovered that truly captures the biblical idea of wealth creation. In it, they affirm the following:

Wealth creation is rooted in God the Creator, who created a world that flourishes with abundance and diversity.

We are created in God’s image, to co-create with him and for him, to create products and services for the common good.

Wealth creation is a holy calling, and a God-given gift, which is commended in the Bible.

Wealth creators should be affirmed by the Church, and equipped and deployed to serve in the marketplace among all peoples and nations.

Wealth hoarding is wrong, and wealth sharing should be encouraged, but there is no wealth to be shared unless it has been created.

There is a universal call to generosity, and contentment is a virtue, but material simplicity is a personal choice, and involuntary poverty should be alleviated.

The purpose of wealth creation through business goes beyond giving generously, although that is to be commended; good business has intrinsic value as a means of material provision and can be an agent of positive transformation in society.

Business has a special capacity to create financial wealth, but also has the potential to create different kinds of wealth for many stakeholders, including social, intellectual, physical and spiritual wealth.

Wealth creation through business has proven power to lift people and nations out of poverty.

Wealth creation must always be pursued with justice and a concern for the poor, and should be sensitive to each unique cultural context.

Creation care is not optional. Stewardship of creation and business solutions to environmental challenges should be an integral part of wealth creation through business.

You can find more about the “Wealth Creation Manifesto” here.

A biblical view of wealth creation has to be something we correctly understand if are going to work at bringing about holistic transformation in how believers and others view wealth. Seeing wealth creation in light of scripture will also unleash our own creativity in the workplace and help us avoid the two damaging extreme views—Michael Moore’s view that wealth is evil and the prosperity gospel that views wealth as a sign of faith.

Editor’s note: A proper view on wealth creation starts with an understanding of God’s purpose in our work. Read more in How Then Should We Work? Rediscovering the Biblical Doctrine of Work.