Resources for an even Deeper Dive
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Deciphering Term Sheets by Aunnie Patton Power/ Adventure Finance
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Podcast: Steward ownership – securing the purpose of your company with Achim Hensen
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Panel on Alternative Finance & Steward-ownership with investors and experts at SO:22
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Conversation on Governance and Ownership: Let’s finance new corporate models at ChangeNow2024
- Fireside Chat on Adventure Finance and Steward-ownership with Aunnie Patton Power
OpenAI, the US-based organization behind the revolutionary chatbot ChatGPT, might be one of the most discussed companies in late 2023 and early 2024. While the company has a fascinating product in itself (ChatGPT), special about this case is that, as Sam Altman puts it, “in some important sense, [OpenAI is] just not a regular company”, both in terms of 1) OpenAI’s ownership structure as a “capped profit” company combining a nonprofit and a for-profit arm and 2) OpenAI’s role in spearheading the development of artificial intelligence (AI) with profound implications for the future of humanity.
OpenAI – and the events surrounding the company in late 2023 — have brought the topics of ownership and governance, power and money and the fear of game-changing technologies controlled by shareholder value maximizing capitalism to the frontpages of media outlets.
In exploring OpenAI’s structure in the context of steward-ownership, we show that OpenAI’s structure is a form of steward-ownership — with room for potential in bringing stewardship to life and significant opportunity for development when looking at governance, investor relationships and incentive structures. We also highlight the dangers of the “soft power of money”, as the ability to fund – or withhold funding – creates a form of influence that goes beyond legally legitimized power. While in these blog posts we are discussing the case of OpenAI specifically, this analysis extends beyond the singular example. On a bigger scale, the case showcases like no other the relevance of challenging the conventional notions on corporate ownership and entrepreneurship and of finding new answers — particularly in fields as game-changing as artificial intelligence.
We think it’s a good read for everyone wanting to learn more about how to bring steward-ownership to life and structure an effective governance.
Read the blog posts here:
In the article "Zebras, unicorns and the legal framework for financing sustainable startups”, Joel El-Qalqili and Maximilian Offinger write about the "zebra" business model and legal considerations for financing companies that seek a balance between financial success and positive social or environmental impact. El-Qalqili and Offinger argue that the real distinction lies not just in zebras' dual focus on profit and impact – something unicorns can also pursue – but in their corporate culture. Zebras are characterized by the way their culture is structurally embedded in their business models and how culture and structure interact.
El-Qalqili and Offinger make the zebra concept legally actionable by offering a framework for financing businesses that prioritize long-term value over short-term profits. Their article explores how the zebra model can be legally structured at the company level for example with steward-ownership, identifies suitable financing instruments, and discusses regulatory options for venture capital funds targeting zebras. In particular they showcase that some forms of fund regulation (e.g. XY und Z) are better suited for mezzanine financing while others limit the funds to equity financing (e.g. venture capital fonds). By addressing these legal challenges, El-Qalqili and Offinger help make zebras a viable option for purpose-driven entrepreneurs and investors.
Please note that the article is written in German: