Cimbria Capital - 2019 New Year's Letter

2018 – What was important…

On the surface, 2018 was a year of discouragement due to unsettling and repeated political turmoil. A misguided political class dominated headlines due to seemingly greater interest in media sensationalism and personal agendas rather than addressing social, environmental, and economic issues of global significance that require attention now. 2018 therefore became a year where I felt forced to take a step back – and sometimes several – to keep an appropriate and objective perspective related to both personal and professional endeavors. In that process, certain more important truths became evident related to the efforts and mandate of my firm:

-      American infrastructure is deteriorating and breaking at an alarming rate nearing end of life  

-      Climate change is still being politicized and questioned rather than reacted to appropriately

-      Current water and agriculture practices and systems are woefully inadequate in addressing nutritional requirements, weather extremes, and sustainability needs

I therefore strongly encourage all of us to find a way past the current political and societal mayhem, to allow time and focus on more fundamental challenges – breaks and shortcomings in our foundation – unsafe infrastructure, a deteriorating environment, and an increasingly unhealthy population. 

The world is still new…

At times it seems that the world is moving backwards rather than progressing towards more equality, security, and prosperity. But the pendulum swings, moments of worry, and even despair are unavoidable. The proverbial ‘one step back’ will occur again and again because it is required to shake us from complacency, trigger strong reactions, and generate forward movement based on the best in us. We should not relish the turmoil, but neither should its appearance surprise nor paralyze us.

I still consider our world for new and young. We are, as a global society, the equivalent of a rowdy teenager still incapable of harnessing, controlling, and directing his newfound strengths with appropriate accuracy and a balanced approach. But as with most things, progress is a process requiring hard work and patience. And in the case of true societal progress, it requires a majority of us to push and pull in the right directions to succeed.

I think we at an inflection point of progress… we are recognizing that certain areas are [still] moving in the wrong direction; inequality, human rights, our health, our environment, and thereby our society as a whole. This wrong is creating needed and forceful reactions from those of us usually more silent. The good news is that we have the tools - we just need to pick them up and use them. New and inexpensive technologies allow not only for greater industrial efficiencies and thereby a better use of the world’s limited resources, but also for global connectivity and democratized communication that educate and empower. I propose that we then view the current ‘breaks’ in our foundation as the opportunity of our time. Rarely have ‘financial opportunity’ and ‘making the world a better place’ been more interconnected!

Where does Cimbria fit into a still new but improving world…

Cimbria Capital focuses on growth equity investments in private companies in the agriculture and water-related sectors, and believes that these industries need expert capital, advisors, and operators that can continue to catalyze disruption and leverage innovation. Financiers such as Cimbria are uniquely positioned to help empower and to profit from the demands for better ways of growing food and protecting clean water. Cimbria’s role – as helpful and smart money – is to enable business models, technology, and people. We have never felt better about our position and our ability to succeed. And we continue to invite growing companies and investors to join us on this journey.

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 As a founder and proud team member of Cimbria Capital, I thank each of my colleagues, inside Cimbria and our partners companies, for your hard work, your dedication, and your loyalty. I am thrilled about the prospects of 2019. We are positioned to make this new year our best and most interesting yet.

With this in mind, I wish all of you – friends, colleagues, business partners, and investors - a prosperous and happy 2019. We at Cimbria thank you for your continued support, and we look forward to updating you on our progress and developments in 2019 via our website, our newsletters, and LinkedIn.

Happy New Year!

Brian V. Iversen, Founder and Managing Partner, Cimbria Capital