This sub-chapter brings you up to speed on the basics of steward-ownership-aligned financing – investments structured along the principles of steward-ownership. How is steward-ownership-aligned financing defined? What differs from other investment forms? While this sub-chapter will give a basic overview of the characteristics of steward-ownership-aligned financing, there will be a deep dive into all the specifics later on.
The definition of steward-ownership-aligned financing applies the core principles of steward-ownership – self-determination and purpose-orientation – to the financing side of things, thereby forming the foundation for how investments can be designed. But what exactly does this mean for investments into these companies or companies that potentially want to move towards steward-ownership in the future? How do entrepreneurs still raise the necessary capital to pursue their entrepreneurial vision while adhering to these principles? And how can investors participate in these companies? This is where we dive into the fundamentals of steward-ownership-aligned financing.
In steward-ownership-aligned financing, the quality of the investment (i.e. how the investment is structured) and the relationship with the company are designed in such a way that investors become financing partners of the company while:
Thus, the relationship between the financing partner and the company is defined by:
In order to put this definition to life and create the investment quality that aligns with its definition, adjustments, alignments and twists are carried out in three key areas of investments: 1) governance, 2) returns and 3) liquidity; to turn conventional investment structures into steward-ownership-aligned financing.
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