A potential solution to the capital conundrum for Coops?

2. A POTENTIAL SOLUTION
TO THE CAPITAL
CONUNDRUM

3. BLUEPRINT FOR
A CO-OPERATIVE DECADE (2013)
“Cooperatives need access to capital if they
are to be established, grow and flourish.”
“The aim is to secure reliable
co-operative capital while guaranteeing
member control.”

4. BLUE RIBBON COMMISSION (2013)
The ICA established the
Blue Ribbon Commission
on Co-operative Capital
in 2013.

5. SURVEY OF
CO-OPERATIVE CAPITAL (2015)
‘capital from external sources’ and ‘adhering to
co-operative principles’ is not an either-or
proposition
“there are many options and structures that
preserve democratic control by ensuring all or a
majority of the voting rights in a co-operative
enterprise remain in the hands of members”.

6. SURVEY OF
CO-OPERATIVE CAPITAL (2015)
“non-voting shares can be used to preserve
member democratic control while creating one or
more classes of shares that can attract member
or non-member investment by participating in
the appreciation in value of the co-operative”

7. SURVEY OF
CO-OPERATIVE CAPITAL (2015)
“The attractiveness of these shares increases if
they are liquid. Many larger co-operatives have
publicly traded preference shares, but even
smaller co-operatives can provide liquidity
through an internal market.”
“With advancing technology, this can be easily
provided through an online platform, creating a
private electronic marketplace.”

8. THE CAPITAL CONUNDRUM
FOR CO-OPERATIVES (2016)
“over the last decade, there have been more
instances of co-operatives issuing new capital
instruments beyond membership shares”

9. THE CAPITAL CONUNDRUM
FOR CO-OPERATIVES (2016)
“a typical solution consists of issuing non-
withdrawable investment shares that do not carry
voting rights”
“these may or may not be tradeable in an
internal market”.

10. TIMELINE

11. WHAT IS COOP EXCHANGE?
A mobile app, that allows coops, large or small,
to issue non-withdrawable, non-voting
investment shares that are tradeable via the
Coop Exchange mobile app, bringing investors
from all over the world, to coops from all over
the world.

12. BONUS:
FAIRER WEALTH DISTRIBUTION

13. END