While the idea of steward-ownership has been around for some time and has come a long way, it is now being newly embraced and explored also in the investment world. The actors you will meet later in this chapter and many others have found a lot of innovative approaches and solutions for steward-ownership-aligned financing. Yet, we must acknowledge that there are still significant challenges and hurdles. These can broadly be categorized into three main clusters:
The innovative structures and solutions being created by pioneering visionaries who are exploring new possibilities in this field will need ongoing refinement. This includes evolving suitable language and creating models and solutions that can be applied more universally. It also includes exploring more ways to set up financing structures and build, inspire and include more investment vehicles that align with the principles of steward-ownership.
Steward-ownership and the finance market supporting it are still in its early stages. Many investors have never heard of steward-ownership or aligned financing and are not familiar with other types of financing besides conventional exit-oriented equity investments or loans. Common fund structures and regulations often reflect this, as they sometimes do not allow for financing instruments aligned with steward-ownership principles. This means that the burden on entrepreneurs to explain the concept to investors, who are unfamiliar with it, remains high and the freedom of fund managers is often very limited.
Structural Disadvantages: There are structural disadvantages for steward-ownership and aligned financing due to a lack of legal options and challenges in accessing state subsidy programmes because they do not follow conventional models. These barriers need to be addressed to level the playing field for steward-ownership-aligned financing.
It is also essential to consider the critical role and dynamics of money within this context. Historically, philosophers like Aristotle have noted that the quality of money is measured solely by its quantity. Unlike other goods, money has no saturation point; more is always better. In steward-ownership, this dynamic is challenged by introducing limitations and redefining the role of money within companies. By limiting the influence of money and asking the question of “what is enough”, steward-ownership challenges fundamental beliefs and norms of our current economy and investment world. This makes it a structurally challenging, psychologically and emotionally charged topic, which many individuals do not feel equipped to dive into.
Despite these challenges, the most critical factor is the motivation and commitment of individuals.
We see a growing trend across various sectors and major economies: an increasing demand for value-driven, mission-secure, resilient businesses that prioritize long-term orientation and regenerative thinking over short-term profit. Labor and capital markets are beginning to take notice, and among investors, too, there is a rising interest in alternatives to conventional IPOs and exit models.
Still, the field of steward-ownership is a collective experimental ground. There is no single answer, and being part of this movement means embracing the discomfort of uncertainty and co-creating solutions. But this field is not developing in isolation. Steward-ownership-aligned financing has evolved through ongoing conversations and exchanges with other movements, positioning itself as part of a broader landscape of alternative financing models. These movements share a common motivation: rethinking traditional investment structures to better align with today's reality of business and society. Initiatives such as Zebras Unite, Transform Finance, RSF Regenerative Social Finance, the Exit2Community movement, or ideas like Community Capital and Regenerative Finance, along with thought leaders like Aunnie Patton Power and Erinch Sahan, all contribute to this shared landscape to develop financing (and ownership) solutions beyond the conventional, exit-driven investment paradigm.
Now, hear directly from some of these forerunners.