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Future Equity Crowdfunding for Business Conversion to Cooperatives

Transforming Private Businesses into Cooperatives

At Coop Exchange, we’re building a platform that will offer a unique pathway for private businesses seeking a new way to operate, one which protects legacy, safeguards values and enhances hard-earned community trust.
In short we’re building a platform that will enable existing buisnesses to transition into a cooperative model rather than simply selling out to competitors. Through the development of our equity crowdfunding platform, businesses will in be able to raise capital needed to facilitate this transformation, allowing current shareholders to exit while transitioning the business into a cooperative. This process will involve creating restricted voting or non-voting investor shares that attract a share of profits.

A New Cooperative Future

  • Business Transformation: Our platform is being developed so that it supports businesses in their transition to a cooperative model, a move that can redefine their corporate identity and align them more closely with community and employee interests.
  • Shareholder Exit Strategy: The capital raised in the future can be used to purchase the business from current shareholders, ensuring a smooth and equitable transition.

Investor Shares in the New Cooperative

  • Profit-Attracting Shares: We envisage a situation in which the new cooperative will issue restricted voting or non-voting shares. These shares will entitle investors to a share of the cooperative’s profits without granting them control over the cooperat’ve's operations.
  • Maintaining Cooperative Principles: Once established this approach will help ensure that the cooperative's decision-making remains democratic and member-focused, while also providing a return to investors.

Likely to be suitable for

  • Businesses Seeking a Cooperative Model: private businesses whose owners wish to exit, and who see value in transitioning to a cooperative structure.
  • Community-Oriented Ventures: businesses that wish to embed themselves deeper into their communities and operate under democratic principles.

Our Future Processes

  1. Consultation and Planning: We’re developing a solution which will begin with a detailed consultation to understand your business, the exit strategy for current shareholders, and the vision for the cooperative.
  2. Campaign Strategy: Develop a tailored crowdfunding campaign that highlights the business’s potential as a cooperative and appeals to investors interested in supporting such transformations.
  3. Legal and Financial Structuring: Assist in the legal and financial restructuring necessary for the transition, including the creation of new share classes.
  4. Investor Engagement and Fundraising: Launch and manage the crowdfunding campaign, engaging with investors and driving funding to meet the transition goals.

Potential Benefits of Partnering with Coop Exchange:

  • Specialised Support: Our growing expertise in both crowdfunding and cooperative structures will ensure a seamless transition for businesses.
  • Access to Ethical Investors: Reach a network of investors who are specifically interested in supporting cooperative models and ethical business practices.
  • Transparent and Ethical Approach: We’re designing processes to ensure that we maintains high standards of transparency and ethics throughout the transition process.

Stay in touch

To learn more about how Coop Exchange plans to build financial solutions tailored to coops, please contact us at conversions@coop.exchange.

Please note that the content of this page is for general information and educational purposes only.
In so far as it relates to Coop Exchange’s potential services these relate to a future state once the Coop Exchange platform is launched and appropriately regulated.
The information is not provided, and should not be construed as the provision of financial advice, the promotion of an investment product or dealings or arrangements in investments.
Investments bring risk and so anyone wishing to invest (whether in coops equities, debt or other securities) should first obtain appropriate advice from an authorised person before doing so, please see also our Regulatory Notice.