Cimbria Capital - 2024 New Year's Letter

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

Brian V. Iversen

Status is reachable

In business and in finance, we can swing with the best of them when it relates to using acronyms and platitudes. Most professions do it – using acronyms and industry specific platitudes - since it is an excellent tool to keep perfectly knowledgeable and intelligent non-industry folks at a distance. That way, it is easier to disguise that what we do is pretty damn simple… buy low, sell high (there is one!).

I have never liked industry specific acronyms, mostly because they oftentimes confuse me as well. And if you had asked me, I would also let you know that I don’t appreciate business-specific platitudes since they most often are used to portrait cleverness and insight without the presence of any of those things. That said, admittedly, I will on occasion ‘touch base’, ‘think outside the box’, ‘get my ducks in a row’, and I will always be looking for the ‘low-hanging fruit’.  But I will never ask you about ‘skin in the game’ (since that whole thing is generally misunderstood). Another fun one is… ‘Discomfort and pain is weakness leaving the body’… used both in business and by annoying types during CrossFit classes (I have been told).

A few years ago – also trying to be clever – I told the management team of one of Cimbria’s most successful partner companies that they had to “get comfortable being uncomfortable”. This statement (read: platitude) seemed appropriate for a small and growing tech company with new but limited growth capital available to achieve the goals promised during fundraising and negotiations. My comment ended up on the wall of their main office in Denmark. It is still on that wall, and they have lived it [quite successfully] ever since.

“Get comfortable being uncomfortable”.

For me, 2023 became a year of several revelations. It was from one perspective a difficult year since certain workstreams were problematic and worrisome. It was also the year that my firms, Cimbria Capital and Cimbria Consulting - finally and a bit overdue – became something more than start-ups. From this perspective, 2023 stands out as the proudest moment in my professional career to date. We fought difficult uphill battles but succeeded tremendously, and we have had clear successes, including Cimbria Capital’s first full partner company exit.

Cimbria has worked as a start-up since inception. Alongside all other founders out there, we have been grinding the grind, we have been worried, we have had doubt, and we have incurred countless sleepless nights in our efforts to create something out of nothing. We have promised and both under and over-delivered, and we have created partnerships and alliances that created value and some that never materialized. The current status is that we have created an investment firm with approx. one hundred limited partner relationships, and we have at the same time created Cimbria Consulting, an ever-growing enterprise doing its utmost to help companies in water, agriculture, and renewable energy succeed. In my humble view, we have proven that our value proposition is very real, as both an investor and as a consultant, and we have proven that we have ‘staying power’. We are now ready to scale.

We have along the way, admittedly, made one sizeable mistake. Something that must be fixed before we can achieve more. Along our hard-fought journey, we have mostly forgotten to ‘ask for help’. Personally, I have since inception been reluctant to reference Cimbria as a start-up [This write-up may be the first time!]. Since I - as a self-proclaimed highly tactical professional - didn’t wish to portrait weakness. Sometimes, however, a stoic front will keep good people from helping you, since it is not clear to them that you need it. That was wrong.

We will correct this mistake in 2024 by seeking strategic relationships with larger and more experienced investors and industrials with access to capital and networks. We will be looking for partners that will find value in Cimbria’s investment and consulting platform in the water economy. Somebody with the need for our team and ecosystems, uniquely created to benefit from our changing world. We know our strengths and weaknesses, and we will on that basis seek synergistic business relationships. That’s my main learning from the year that just passed. - That it is ok to ask for help.  

That brings me back to “getting comfortable being uncomfortable”. I do still believe that it is good advice since it prepares companies [and people] embracing change for the unavoidable encounters with obstacles and setbacks. It prepares us for the worry and doubt that comes with taking risks and in times of change. It warns us that grit is required for a successful outcome. However, there is a significant caveat to be aware of… “getting comfortable being uncomfortable” is only good advice for a specific and defined moment in time. Since discomfort will keep you alert, but also simmering in the unknown and unsustainable. Accepting discomfort is only a means to an end. It is a bridge to somewhere new and better. But, as with all other bridges, it is a pathway to be crossed in the safest possible way. To be clear, dwelling or being complacent in a state of discomfort is [obviously] not a shortcut to either admiration or glory. This is sometimes misunderstood. In other words, don’t ever get too comfortable being uncomfortable…

I am realizing that I am finding myself in a place where I – for years – have been lingering in my efforts to create a sustainable business without yet being fully successful. Granted, there is a reason why some say it takes 10 years for successful people to become an overnight success. But there is also, unfortunately, an abundance of professionals who struggle for too long and never find their way. Some may even find comfort in this struggle since true success can be scary. Let’s not do that.    

“Being complacent in a state of discomfort is not a shortcut to either admiration or glory.”

My conclusion is that if you find yourself being uncomfortable for years at the time, you should force yourself to pause and reassess. And then find a way to rebel – as aggressively as needed - against this discomfort. Only then will the – sometimes painstaking – discomfort be worthwhile. The goal is to be comfortable since the truest versions of value creation and creativity exist only there. Forgetting this, your struggles will stay struggles and time will, in my view, be wasted. In the words of Tony Robbins, “We all get what we tolerate”.

At times, I am tired of the hard work, the fight, and the constant learnings. At times, I question when I get to reap what I sowed. But that is not really how life is, is it? Life is a non-linear journey of sowing and reaping with non-linear outcomes. That’s probably ok and it certainly keeps it interesting.  

At this milestone in the journey of the Cimbria Companies and in my professional career, I wish to thank those who helped create me as a professional. A most sincere thank you to those who taught me and gave me the skill, knowledge, fortitude, and courage to get here… current mentors and from my past: Christopher Hunt, David M. Leuschen, Lord John Browne , Lukas Loeffler, PhD, Michael Hoffman, N. John Lancaster, Jr., Pierre F. Lapeyre, Jr., Robin Duggan, and Stephen Schaefer.

I also emphasize my utmost gratitude to those around me whose support, professionalism, patience, and friendship have allowed Cimbria to continue to succeed. A sincere thank you to my business partners and colleagues, and to the executives who decided to allow Cimbria’s participation on their professional journeys. - The executives, board members, and teams around Cimbria and our current Partner Companies: AMI Global, APX10, Aganova, Cimbria Consulting, Slater Infrastructure Group, and Fixed Earth Innovations.

These executives, their skillsets, and experiences are the true fabric of our firm. Thank you and continued good luck to each of: Adam Tuton, Agustín Ramírez García, Amir Yaffe, Andrew Hollis, Ben Moxham, Bob Kowalski, Brett Fitzpatrick , Brian Solvig Stenberg, Bryan Clark, Carlos Campos, Christopher M. Foley, Corey Getz, Daniel Lanman, Dean Amhaus, Donald Looper, Helge Daebel, Henrik F. Rasmussen, Henrik Skov Laursen, Igor Mrdjen, Jack Martel, Jason Plummer, Jeanne Simkins Hollis, Esq., Joseph Diekfuss, Julián Recuenco Bernal , Karen J. Frost, Karey Hensley Rebello, Kennet Petersen, Larry Kinsman, Lars Havighorst, Laurie Lindborg Parsons, PE, Lori Culhane, Mahreen Qureshi, MBA, Marcos Barrera, Matt Boczkowski, Mikkel Christian Sørensen, Noah J. Sabich, Femi Osidele, Ph.D., Ori Peled, Per Krogh, TJ "Quint" Shambaugh V, MBA, Richard Eberle, Sheena Rizvi, Michelle Sears, Stacy L. Rowe, CPA, Steve Gluck Steve Gluck, Sune Westrup, Timothy Repas, Trevor Hill, Ulrich Borup Hansen, and Vatren Jurin.

Cimbria will continue to support you and your companies with the best of our abilities in your ongoing and future endeavors. We are very proud to be on your team.

Onwards and upwards!

 ______________________________________________________________________

I wish all of you – friends, colleagues, business partners, and investors - a prosperous and happy 2024. We at Cimbria thank you for your continued support, and we look forward to updating you on our progress and developments in the new year via our websites, newsletters, and LinkedIn.

Happy New Year!

Brian V. Iversen

Founder and Managing Partner, Cimbria Capital