4 ms·

What, if anything, is preventing for-profit platform co-ops from obtaining VC money and chasing a similar growth-to-unicorn curve? Is it just cultural inertia,

• PeterisP 5y ago
  If the purpose of the co-op is to ensure that profits go to the workers and not to company owners/investors, then either you plan to fail at that purpose or you're not interesting to the investors. If the lion's share of the operating profits would go to the investors, it's no better than Uber, if the lion's share of the operating profits would go to the drivers, then what's the motivation to invest?
• noogle 5y ago
  Based on my limited experience, VCs could be dissuaded from investing in co-ops by: 1. No prospects of a big payout (IPO, acquisition). 2. VCs like to have a single point-of-contact (the CEO) and few other owners. In a start-up, the CEO is answerable and serves only the investors. Co-ops behave more like a member-driven organization whose obligation is first and foremost to its members. 3. No option for majority ownership. A co-op eventually has to be majorly owned by the employees rather than by investors.