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

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.