Once steward-ownership is legally implemented, it cannot be undone – that’s part of its beauty. However, if you’re unsure whether you can raise enough aligned capital right now, you don’t have to commit immediately. Some founders choose to keep the door open by postponing the legal implementation while already shaping their financing in a steward-ownership-aligned way. One practical approach could be to include clauses in contracts that state the intention to transition in the future, or to sign a commitment letter that formalizes this intention without requiring immediate structural change. If you want to keep the option of implementing steward-ownership in the future, there are several factors to consider during fundraising, which we’ve covered in this chapter.

That’s a common concern – and there are solutions. This chapter explores how voting rights and other governance mechanisms can be designed to align with steward-ownership principles while still giving investors a voice, all without shifting entrepreneurial control away from the stewards.

Yes – over the past years, a growing number of investors have invested in or worked with steward-owned companies. You can find the names of some investors already investing in steward-ownership in the case studies and examples listed in Chapter 10 of this guide, as well as on this website. This is by no means an exhaustive list, there are many more investors open to steward-ownership aligned financing. If you know of any other investors – or are one yourself – we’d love to hear from you via hallo@purpose.ag.

No, there aren’t any funding programs that are exclusively focused on steward-ownership – at least not that we are aware of. That said, there are several programs and initiatives that may be a good fit for steward-owned businesses, especially those with a strong purpose and long-term perspective. Keep an eye on aligned funds and fellowships that emphasize mission-driven entrepreneurship. In Germany, for example, organizations like the BMW Foundation Herbert Quandt and networks like Brafe.Space are active supporters of the steward-ownership ecosystem and may offer relevant opportunities.

No, our expertise lies in steward-ownership and aligned financing, not in creating comprehensive financing strategies. Others are better equipped to do that.

That’s great to hear! Feel free to send an email to hallo@purpose.ag and include us in the introduction. One of our colleagues will take it from there. Thanks for making the connection!

We’ve put together a collection of helpful resources on steward-ownership-aligned financing – and on alternative financing more broadly. You’ll find the full list at the end of this guide, or you can jump straight to it here.

In the Fundraising chapter of this guide we explore exactly that question. That chapter is all about getting you ready to pitch to investors, prepare your fundraising journey and narratives and your case for steward-ownership and aligned financing. This is where we share tips, experiences from others, and pitch decks for inspiration.

Yes, we offer sample contracts and SHA templates, which you can find in this chapter. These are based on our experience or the experience of others with steward-ownership-aligned financing and legal structures. That said, please note: while we’re deeply familiar with the topic, we are not licensed to provide legal advice. Any materials we share are for informational purposes only and should be used at your own discretion. For any legal or tax-related decisions, we strongly recommend consulting with a qualified professional. If needed, we're happy to point you toward lawyers experienced in steward-ownership.

Information on how to structure founder or entrepreneurial compensation can be found here.

Steward-owned businesses develop other ways to build in incentives, e.g., deferred compensation, profit-sharing models, or other purpose metrics that align interests. For example, OGC’s cash flow waterfall ties investor returns and employee profit sharing. The better the company performs over a set of thresholds, the more profits go to employees. Want to learn more? Jump to this chapter for a deeper dive into the topic.

In steward-owned companies, profits serve a purpose. Profits are used to pay back capital, reinvested back into the business, or shared with stakeholders. Evidence shows that this results in better worker representation, pay, and benefits. Steward-ownership often includes some form of profit sharing. In the case of an Employee Ownership Trust (EOT), the purpose of the business and its owner (the trust) is to benefit employees. In other steward-owned forms, businesses may also share a portion of their profits or economic shares, the proceeds of which can be invested in longer term instruments such as qualified retirement plans.

Investors can sit on a steward-owned company’s board or serve as advisors. The distinction in steward-owned businesses is that economic participation does not by default guarantee control in the business. Should the stewards (i.e., entrepreneurs) of a business decide to invite an investor to the table, they may accept.

Both is possible, internal and external investors.

This is very specific to the country you are operating in, and should be discussed with your tax or financial advisor. It is definitely important to be taken into consideration when choosing the financing instrument.

Yes, they absolutely can. But do they really need (majority) voting rights to do so? Investors can offer valuable guidance and input without holding formal voting power. There are many other governance mechanisms designed to achieve exactly that. We recommend jumping to this chapter for a deeper dive into the topic of governance.

This is extremely subjective and depends a lot on the individual company and its investors. It involves questions like: what is feasible and “appropriate” for the company and its future financial potential, what is appropriate in relation to the capital and risks the investors took or in relation to other (non-financial) investments in the company (e.g. founder compensation). You can find more on this in this chapter.

The founders should discuss their expectations and key needs for the financing instruments and communicate them clearly to the investors. Whether the investors are then involved in the legal design of the financing instruments is open.

We're seeing growing interest in steward-ownership-aligned financing – from investors, entrepreneurs, communities, and changemakers alike. While there isn’t one central community we can point to just yet, we’d love to help connect you. If you're curious or looking to engage with others in this space, feel free to reach out to us via finance@purpose.ag to connect with like -minded investors and wealth holders. We're helping to weave the threads together.