LONDON – February 12th 2024 – In a significant stride towards reshaping the economic landscape, Coop Exchange, a visionary fintech platform, announces the successful completion of its pre-seed funding round. This significant milestone underscores Coop Exchange’s potential as a major disruptor in cooperative and sustainable finance as evidenced by its impressive £10 million valuation at this early stage. Co-operators Financial Services Limited led the investment with a contribution of over $2 million (CAD), acquiring a 12.4% stake.
Cooperative Capital
Coop Exchange is poised to revolutionise the cooperative sector by providing unparalleled access to new capital sources. As a global platform, its mission is to combat wealth inequality by facilitating investment in tradeable coop shares, fostering the growth of coops and mutuals. This initiative resonates powerfully with impact investors and sustainable fund managers, aligning financial returns with tangible social impact.
Sustainable Finance
Coop Exchange aims to become a regulated stock exchange, allowing cooperatives to list cooperative financial instruments: bonds; and equity, with restricted voting rights in line with cooperative values and principles but with a share of surplus. This approach not only protects investors and the cooperative movement, but also opens a new market for sustainable fund managers. The cooperative model, upheld as the most sustainable business model, will be at the forefront of this new investment era. Coop Exchange offers fund managers a unique opportunity to access this substantial market of sustainable businesses and a potential new market of private business conversions.
Stephen Gill, Coop Exchange, CEO: “At a time when cooperative capital is increasingly vital, Coop Exchange emerges as a distinct and crucial player, unlocking a fresh market for sustainable finance. Having Co-operators lead our pre-seed round is a testament to their forward-looking and cooperative nature, and we're extremely pleased with this partnership.”
Rob Wesseling, Co-operators, President and CEO: “As one of the largest impact investors in the world, anchoring financial security within positive community impact is the basis of our business model. We see our investment in Coop Exchange as a future-thinking extension of our purpose. Last year, we polled to find over 60% of our market is interested in aligning their investments with their values, however they see limited opportunities and premium costs as barriers. Supporting an exchange dedicated to businesses that reflect those values is going to break down barriers and accelerate the transition to a more sustainable economy.”
Daniel Sinclair, Co-operators, Vice President of Corporate Development & Head of Co-operators Corporate Venture Capital: “This new platform has the potential to significantly enhance how cooperatives secure capital and the pace at which they can do so. We’re pleased to come to the table as Coop Exchange’s first cooperative partner and investor. This partnership is an opportunity to boldly demonstrate our growth and innovation strategy, our desire to see more impact-driven businesses succeed, and our commitment to the cooperative business model.”
Innovative Approach
Coop Exchange, with its innovative and sustainable approach, is set to redefine the landscape of cooperative investment. Its commitment to inclusive growth, sustainable development, and equitable wealth distribution positions it at the forefront of the new economic paradigm.
About Coop Exchange:
Coop Exchange is a startup headquartered in London, UK, with its EU office in Malta. Its mission is to address wealth inequality by growing the cooperative economy – providing coops with access to new sources of capital – and enabling everyone to invest in tradable coop shares. It’s led by a strong and experienced board from the sector, including: Ben Reid OBE, ICA Board Member; former MEP, Dame Pauline Green, ICA President (2009 – 2015); Shaun Tarbuck, ICMIF CEO; and Barry O’Dwyer, Group CEO of the UK’s largest mutual, Royal London. www.coop.exchange
About Co-operators:
Co-operators is a leading Canadian financial services cooperative, offering multi-line insurance and investment products, services, and personalized advice to help Canadians build their financial strength and security. Co-operators has more than $58 billion (CAD) in assets under administration and has been providing trusted guidance to Canadians for the past 78 years. The organization is well known for its community involvement and its commitment to sustainability. Achieving carbon neutral equivalency in 2020, the organization is committed to net-zero emissions in its operations and investments by 2040, and 2050, respectively. Co-operators is also ranked as a Corporate Knights' Best 50 Corporate Citizen in Canada. www.co-operators.ca.
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For more information, please contact:
Aaron Stewart aaron.stewart@coop.exchange +44 (0)7794612016