Financing
Cooperative entrepreneurs report that access to financing is a key obstacle. The scarcity of outside financing options has caused many cooperatives to remain undercapitalized. And that undercapitalization directly impedes business growth.
Co-op Financing & Investment
The #1 inquiry we get at Start.coop is about investment in coops. Modern cooperatives have the potential to bring in outside investment from the millions of people looking to create a more equitable economy. But there are major challenges for entrepreneurs to navigate.
How to Invest in Co-ops (Part 1)
Part 1 of this two-part series provides context on why cooperatives need financing, the role of co-op loan funds, how undercapitalization slows cooperative ownership, and recent innovations in co-op financing.
Read: How to Invest in Co-ops (Part 1)
How to Invest in Co-ops (Part 2)
Part 2 of this two-part series provides a more hands-on look at the specific terms of what investing in cooperatives looks like, how investors are repaid, typical investor shares and voting rights, and how investors can connect to co-op investment funds.
Read: How to Invest in Co-ops (Part 2)
Equal Exchange Case Study
This case study details how Equal Exchange innovated co-op financing by creating non-voting investor shares for co-ops.
Read: Equal Exchange Case Study
Real Pickles Case Study
This case study details how Real Pickles, a small, local food business in western Massachusetts preserved its social mission through transitioning to a worker-owned cooperative and using an innovative financing strategy.
The Cooperative Startup’s Financing Playbook
This playbook, written by Alissa Orlando is designed for cooperative entrepreneurs looking to raise their initial funding. It can guide the first one to two years of getting your organization off the ground and is informed by her experience raising capital as the co-founder of The Drivers Cooperative, a worker cooperative in New York State.
Co-op Funders
There are a small number of organizations working to strengthen the cooperative ecosystem and providing financing to early-stage cooperatives. We consider these organizations partners and encourage you to reach out to them to learn more about the products and services they provide.
Shared Capital is a national CDFI loan fund, and cooperative itself, that provides financing for cooperatives across a wide variety of sectors.
Local Enterprise Assistance Fund (LEAF) is a loan fund that provides financing with a primary focus on food, housing and worker ownership.
Working World is a loan fund that provides financing primarily to worker owned and employee focused cooperatives.
Seed Commons is a national network of geographically focused loan funds (including the Working World) mostly focused on worker ownership.
Cooperative Fund of the Northeast (CFNE) is a CDFI loan fund that provides financing for many cooperatives across the Northeast.