Capital Providers
Rethinking ownership means rethinking finance. The capital providers bringing steward ownership aligned financing to life consciously redesign investment. They provide capital that serves the purpose of the business while generating appropriate returns – instead of taking over control. More and more investors are incorporating this logic into their portfolios, investment and fund design. This page is your starting point for learning about these capital providers, what motivates them and how they operate.
Why aligned financing matters
For steward-owned companies to thrive and unfold their positive impact on people, planet and society, they need aligned financing. Finding this quality of capital remains a major barrier for steward ownership. Today, many capital providers are looking for more intentional and value-based forms of financing and investment structures with logic that works for a diverse set of companies. More and more of them are moving towards steward ownership aligned financing.
To find out more about the basics of steward ownership and its aligned financing, check the resources below.
How can investors provide "aligned" capital?
Investments in the context of steward ownership are designed to serve the interests of companies and investors best while keeping the two principles of steward ownership intact:
The company's purpose remains in focus, and profits and value created serve that purpose
The entrepreneurial control remains with people connected to the company
In practice, this means that capital providers tend to invest in structures where:
- Investors don't automatically take over voting rights (but are – if wished – involved in other ways)
- Returns are appropriate but capped in some way or form
- Investors can exit without the company having to be sold (redeemable, self-liquidating, etc.)
To learn more about this, the best starting point is our Basics Chapter 03: "What is steward ownership aligned financing (SOAF)?
Learn about Capital Providers
Capital providers providing steward ownership aligned financing come in many different forms and with different motivations. Some of the most prominent types of capital providers we have come across are:
- Funds and impact funds that focus (part of) their portfolio on steward ownership
- Business angels wanting to support independent, purpose-driven startups
- Patient capital providers offering mezzanine financing
- Philanthropic actors and foundations funding the field directly
- Mission-aligned banks, family offices and business angels exploring the model
But what better way to understand how capital providers think about and invest in steward ownership than learning how they bring it to life. Four examples to start with:
Karma Capital
Karma capital is an investment holding company founded in 2018 with the goal of solving societal problems by shifting capital. They do so by investing in steward-owned companies and public interest media companies. Karma capital provides both, investment capital and philanthropic capital.
Examples of their investment cases are Haferkater, WeTell and VYLD.
DOEN Ventures
DOEN Ventures was founded in 1991 and is funded by the Dutch Friends Lottery and the Postcode Lottery. DOEN Ventures invests in sustainable and social start-ups with a positive impact. They invest in steward-owned companies because this structure ensures that the purpose of the company is safeguarded in the long term. As an evergreen fund, they offer a variety of financing instruments.
Purpose Evergreen Capital
Purpose Evergreen Capital (PEC), was founded in 2018 to offer SMEs and companies in succession a third path to structure their future: By providing patient and steward ownership aligned capital, they support companies to stay independent and mission-driven also throughout transformation.
Examples of their investment cases include ARCHE and BuurtzorgT.
Purpose Ventures
Purpose Ventures was founded in 2016 as the first investment company exclusively dedicated to fund start-ups that are steward-owned or want to become steward-owned. Purpose Ventures was found to not only provide aligned capital but to also as a learning room for the kinds of capital that steward-owned companies need.
Examples of their cases include: Sharetribe, Haferkater and WILDPLASTIC
In order to further lower the barrier of aligned capital so that steward ownership becomes more accessible, we are currently working on a database of capital providers aligned with steward ownership. Our goal is to build a curated, non-promotional overview so the field becomes legible at a glance and better to understand.
Once available, the database will be launched here as an open-content tool for learning and visibility. We're excited to share it with you as soon as we can.
The Steward Ownership Aligned Finaning Network (SOFIN)
Want to go deeper? The Steward Ownership Financing Network (SOFIN) brings together investors and practitioners curious about steward ownership aligned financing. It's a free space for peer learning, exchange, and discussing investment cases – open to anyone exploring how to finance steward-owned companies.
Learn more about SOFIN