What is Steward Ownership Aligned Financing?
A new logic for investment, where capital supports companies without commodifying them. steward ownership aligned financing (SOAF) restructures the relationship between investors and companies around purpose, autonomy, and long-term health.
SOAF definition: in a nutshell
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, translating to two core principles:
No commodification of the company as a whole
Economic claims are limited in terms of duration, amount, or influence.
Preserving the company’s entrepreneurial autonomy
The entrepreneurial control is never overtaken (bought)
Implementing SOAF
Steward ownership aligned financing is a form of investment structured along the principles of steward ownership. It focuses not just on WHAT a company does or WHAT investors fund, but on HOW the investment itself is structured. The nature of the investment and the relationship between the company and its investors take centre stage.
This translates into a different logic compared to conventional investment in three key areas:
This allows the investor-company relationship to fundamentally shift towards a more intentional relationship, aligned with the purpose and long-term development of the company. Steward ownership aligned financing often means new and innovative financing structures and instruments.
Steward ownership aligned financing in practice
Here are some forerunners who successfully developed aligned capital solutions. Learn about securing early-stage capital for startups, achieving successful later-stage financing, and structuring capital to transition SMEs into steward ownership.
VYLD
A fem health-tech start-up that found a unique way to finance their early growth
BuurtzorgT
For a different approach to mental healthcare this company needed patient and aligned capital
Haferkater
Becoming steward-owned through crowdfunding and aligned investors
OGC
How a buy-out of investors can look like in practice. Fair, respectful and with a waterfall structure for payouts
Keep exploring
Now that you've learnt the basics, you may want to go deeper to understand why we need a different kind of capital?
Then we recommend these interviews with leading voices on alternative financing: