Kevin McGovern on Joint Ventures, Vetting Deals and Global Growth
How Kevin McGovern Built 6 Global Companies & Scaled Billion-Dollar Ventures
Founders, family office investors and deal makers who want to learn how one dealmaker approaches vetting, relationships, licensing and joint ventures.
Worth quoting
"Our reputation is much more important than our balance sheet."
"Often you don't need to go to investors. Think about how many applications you have for your product."
"When you meet people, don't worry about their business. Worry about the person."
What you will hear
Kevin, chairman and CEO of McGovern Capital, explains how his single family office approaches large deals. The firm's motto is to catch the current and make the wave, meaning it looks for trends before they are obvious. He also says to cut losers early and keep investing in winners, and that he says a reputation for vetting deals matters more than a balance sheet.
The talk also covers joint ventures and licensing. Kevin describes the McGovern Grid, which splits products into applications and areas of distribution so a company can look for capital through partnerships instead of only investors. He shares his views on how deals are set up, urges investors to meet the CFO, and says personal relationships open doors with sovereign wealth funds and family offices. Richard C. Wilson hosts the interview.
From the source
- Kevin has co-founded over 25 companies, six of which became world category leaders.
- The McGovern Grid splits applications, products and areas of distribution so partnerships and joint ventures can be explored as ways to find capital.
- Kevin says he sees growing interest from plastic manufacturers in his sugarcane waste resin.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: How Kevin McGovern Built 6 Global Companies & Scaled Billion-Dollar Ventures. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around joint venture structuring, licensing agreement terms and capital raising rules. Do not use AI to write your own legal agreements.
Five points worth keeping
- Catch the current, make the wave. Kevin says a trend that is already hot may be too late to enter. He looks at what will matter tomorrow, because it takes time to get there. He compares this to skating to where the puck will be.
- Cut losers early, ride winners. Kevin follows the idea of cutting losers early and pushing winners hard. He says this applies to people and investments as well as business lines. He describes putting more money into a winning plastics replacement company.
- Reputation comes before the balance sheet. Kevin vets deals before showing them to partners in Asia and the Middle East. He tells them about the warts as well as the strengths. He says this builds trust and he will not waste their time.
- Know the numbers and meet the CFO. Kevin's worst experience came from letting an entrepreneur hire the finance team. He now wants to meet the CFO and team members, not only the CEO. He also says a CEO needs a dashboard and should know the business numbers daily or weekly.
- Be clear on the field in every partnership. Kevin talks about being clear on the field, such as the countries a partner will cover, and thinking ahead about how an early partner could affect a later deal with a global company. Many people talk to a securities attorney about how to structure these arrangements.
- 1Break up your applications
- 2Break up your products
- 3Map areas of distribution
- 4Explore a partnership or joint venture for each piece
- 5Look for capital in more ways than one
Related questions
- What is a co-GP in real estate?A co-GP in real estate is a second party who shares the management of a deal with the main general partner.
- How do I find a joint venture equity partner?Start by naming your bottleneck, whether that is deal flow, investor access or deal setup.
- How should I split ownership with a money partner?Start with a preferred return for the money partner, then split the back end profit.
Questions about this video
What is the McGovern Grid?
Kevin says it breaks up your applications, products and areas of distribution. The goal is to find where a company can look for capital organically through partnerships and joint ventures.
How does Kevin vet a deal?
He says he takes longer than most and will not be rushed. He checks the deal with a number of knowledgeable people and iterates until he has a clear view of the opportunity.
How much should an early-stage company raise?
Richard C. Richard says many founders raise too much and some may only need two to three million now. Kevin agrees that founders may do well to start with a couple of million, get going, and raise again later in pieces or milestones.
Put this into practice with the one-liner builder. See all co-gp and joint venture deals resources.
