New Models for #Platformcoop Design, Part 5: Reciprocal Ownership

Summary

In this series so far, we have analyzed the potential for a sistered for-profit entity and cooperative entity to separately optimize for financing and member-orientation.  Since publishing this series, I’ve received some good feedback from readers.  Some have asked about additional terms and benefits that could be designed into the TechCo – Cooperative “pre-nuptial” agreement. Feel free to go back and re-visit Part 4, where I’ve supplemented with new ideas.

In this episode, I’m going to unpack the notion of reciprocal ownership or equity interest between TechCo and Cooperative.

More and more, we’re seeing innovative legal constructs (disclosure: our firm represented one of the investors in the financing that consummated this transition) brought to bear to address mission protection, stakeholder governance and other ills created by our historical cultural obsession with shareholder primacy (disclosure: the author is a former attorney with our firm). For more about mission protection, my colleague, Francisca has created a wonderful blog series on the topic.