This is the alternative text for the image

FAQs

What is Coop Exchange?

Coop Exchange is a fintech startup focused on creating a platform for cooperative capital and sustainable finance. Our mission is to revolutionise the financial sector by enabling investment in cooperatives and promoting sustainable financial practices. We aim to bridge the gap between ethical investors and cooperative businesses seeking investment.

How does Coop Exchange contribute to sustainable investing?

Coop Exchange integrates sustainability into every aspect of its operations. We will build a platform that will offer financial products and services that prioritise environmental, social, and governance (ESG) factors which are themselves consistent with the cooperative values and principles while offering a fair return which doesn’t undermine cooperative autonomy. Our platform will facilitate investment in cooperatives and projects that demonstrate a commitment to sustainability, providing investors with opportunities to contribute positively to society and the environment.

What are the benefits for institutional investors?

Institutional investors partnering with Coop Exchange can benefit from:

  1. Diversification: Investing in cooperatives can diversify investment portfolios, potentially reducing risk.
  2. Impact Investing: Opportunities to invest in projects with positive social and environmental impacts.
  3. Sustainable Returns: Potential for competitive returns aligned with sustainable investment principles over the long-term.

Is Coop Exchange regulated?

As a startup, Coop Exchange is in the process of obtaining the necessary regulatory approvals to operate as a financial service provider. Compliance with regulatory standards is a priority to ensure the security and legality of investments. For more information please read our Regulatory Notice.

How does Coop Exchange select cooperatives and projects for investment?

We will have a rigorous selection process that evaluates cooperatives and projects based on their financial viability, impact potential, and alignment with sustainability goals. This process will include thorough due diligence and assessment of ESG criteria to ensure quality investment opportunities for our clients.

Can institutional investors influence or participate in project selection?

We value the insights and expertise of our institutional investors. While the primary selection will be conducted by our team, we encourage active engagement and feedback from investors, potentially involving them in advisory capacities for project selection.

What measures are in place to ensure transparency and accountability?

Coop Exchange is committed to transparency and accountability. We ensure regular and detailed reporting on investment performance and impact. Our governance structure is to be enhanced to include oversight mechanisms to maintain high ethical standards and operational transparency.

What is the minimum investment requirement?

The minimum investment requirement varies based on the specific opportunity and will be outlined in our investment proposals. We aim to accommodate a range of investment capabilities among our institutional investors.

How can investors monitor their investments and impact?

Investors will have access to a dedicated online portal where they can monitor their investments, track performance, and view impact reports. We provide regular updates on both financial performance and the social/environmental impact of the investments.

How will Coop Exchange manage risks associated with sustainable investments?

Risk management will be integral to our investment process. We will conduct comprehensive risk assessments of all investment opportunities, considering market, credit, operational, and sustainability risks. We will also implement strategies to mitigate these risks, including diversification and continuous monitoring. Additionally, would-be listing coops will need to comply with our listing processes and rules regarding reporting, operational management and social impact. However, as an institutional investor we expect you to rely on your own assessment of risk and to make your own judgements accordingly.

How will you maintain cooperative automy and member control despite outside investment?

Firstly, we challenge the idea that current finance raising options maintain cooperative control – a run on withdrawable share capital or debt finance can be just as, if not more damaging than investor equity. That said we will achieve this by ensuring that while investors’ legitimate interests are protected the class of investor shares will carry voting limits consistent with cooperative values.

Contact us for more information

For more information or specific inquiries, please contact us at info@coop.exchange.