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Future Equity Crowdfunding for Cooperative Spin-Outs

Facilitating Spin-Outs with Strategic Financing

At Coop Exchange we’re building a platform that will support spin-outs from existing cooperatives or mutuals, helping them to become independent cooperatives through equity crowdfunding. This innovative approach will, once launched allow parent organizations to spin out divisions or projects into separate entities, financed through the issuance of investor shares.

Empowering Spin-Outs

  • Strategic Independence: Our platform will be designed so that it assists divisions within cooperatives or mutuals to gain independence as separate cooperative entities.
  • Tailored Financing Solutions: We’re building processes that facilitate the raising of capital through equity crowdfunding, enabling these new cooperatives to kickstart their operations and growth.

Investor Shares for Spin-Outs

  • Issuing Investor Shares: Once our platform goes live the new cooperatives will be able to issue restricted voting or non-voting investor shares, attracting investment while maintaining the cooperative’s core democratic principles.
  • Profit Participation: Investors in these shares receive a portion of the profits, aligning financial returns with the success of the cooperative.

Likely to be suitable for

  • Divisions Seeking Autonomy: divisions within existing cooperatives or mutuals that are ready to operate independently but require financial support to do so.
  • Innovative Cooperative Projects: innovative projects within a larger cooperative structure that have the potential to thrive as independent entities.

Our Future Process

  1. Understanding the Spin-Out Vision: We’re building processes such that they will allow us to work closely with the parent cooperative or mutual to understand the goals and potential of the spin-out.
  2. Campaign Development: Craft a compelling crowdfunding campaign that showcases the spin-out’s vision, potential, and investment appeal.
  3. Legal and Financial Structuring: Guide the spin-out in structuring the investment offer, ensuring legal compliance and alignment with cooperative values.
  4. Engagement and Capital Raising: Launch the crowdfunding campaign, engaging with a wide network of potential investors to secure the necessary capital.

Why Would Coops Choose Coop Exchange in the Future?

  • Focused Expertise: Our deep understanding of cooperative structures and financing nuances will make us uniquely positioned to support cooperative spin-outs.
  • Access to a Dedicated Investor Base: Benefit from our platform’s future reach to connect with investors who are specifically interested in cooperative and ethical investments.
  • Comprehensive Support: From legal structuring to campaign marketing, we will build a solution that will provide end-to-end support that ensures the success of your spin-out’s crowdfunding campaign.

Stay in touch

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