4 ms·
> Shares can’t be sold at a profit or owned by people outside of the company. No profits can be taken out of the company. It it a worker-owned coop then? If so
by goodpoint 2y ago
> Shares can’t be sold at a profit or owned by people outside of the company. No profits can be taken out of the company.
It it a worker-owned coop then? If so, why not calling it that?
- shafyy 2y agoNo, that alone does not make it a worker-owned coop.
- aswerty 2y agoThe model they use is relatively well known: https://en.wikipedia.org/wiki/Steward-ownership https://en.wikipedia.org/wiki/Steward-ownership My personal experience with this model boils down to: you make a company and a charity. Where the charity owns special share categories in the company. You can then have other share types for founders and investors. These share types can essentially be bought out (e.g. an investor share can be bought for 5x of it's initial value, say, allowing for investment with a 5x cap). Essentially allowing the charity to gain full shareholding at a certain point. But there is no requirement to have these other share types - but they are useful drivers to get the company off the ground. Obviously this type of investment isn't something traditional VCs care for; other more philanthropic oriented sources are required.