Platform Cooperativism Resource Library


If traditional tech platforms are generally designed to maximize liquidity value, and cooperatives are generally designed to maximize use value, how can the #platformcoop movement successfully blend both models to meet the needs of all stakeholders involved? We think one promising solution lies in a re-frame of the traditional real estate development approach.

Let’s use a simple example to illustrate the analogy; the platform cooperative counterpart is in parentheses. When a real estate development firm (tech entrepreneur/founder) sees an opportunity, they assemble limited partners or members (seed stage venture capital investors) to an LLC and form a holding company (TechCo); this holding company is a place to park capital that will be used to acquire and invest in real estate (the platform technology, or tech infrastructure). Once the general contractor (CTO) hires and oversees the trades contractors (tech developers and engineers), and as the shovels are in the ground, the project concept is ready to be promoted (sales and marketing). Along the way, sales and marketing will pre-lease several units for residential and/or commercial use (alpha and beta customers) to show some initial monthly recurring revenue.

Added May 4, 2020