Non-financial support is just as important as financial support.

Purpose-driven companies need much more than just investment.

They require skills, knowledge, access to networks, talent, and both impact and financial management.

Based on the EVPA framework, here are 5 steps to develop your non-financial support strategy to help your companies grow and thrive:

1. Map the investor’s assets.

First, you need to understand what internal and external resources you can offer to provide value to your portfolio companies.

This should be done when preparing your investment strategy.

2. Assess the companies’ needs.

The second step is to identify the company’s needs.

An initial diagnosis can be made during due diligence.

During the investment management phase, ensure you review the companies’ needs regularly – they will change over time.

3. Develop the non-financial support plan.

When structuring the deal, collaborate with the company to craft a strategy that aligns your assets with their needs.

This stage is where expectations, goals, and targets should be clarified.

Periodically review the plan to revise assumptions and adjust support based on actual needs.

4. Provide non-financial support.

This step involves coordinating resources and implementing the plan.

Non-financial support can encompass training, mentoring programs, access to networks, and active engagement.

If necessary, additional support might be outsourced to third parties.

5. Assess the value and impact of non-financial support.

Lastly, evaluate your impact as an investor – how have you amplified the impact of your portfolio companies through non-financial support?

Although the assessment is the final step, planning it in advance allows for consistent data collection throughout the investment cycle.