Case Study CrowdContainer

Crowd Container, a Swiss company, is reshaping the food system by organizing collective orders of sustainable food directly from producers, while also building a community that creates dialogue between consumers and farmers. They aim to promote change in the food system by supporting innovative projects and connecting people around a shared commitment to sustainability. Founder Simon Reich believes that “ownership should not be connected to wealth but to capabilities.” This principle is reflected in the company’s financing structure, which keeps Crowd Container steward-owned and independent through redeemable shares.

While CrowdContainer eventually found its long-term financing solution through redeemable shares, the company was financed in different ways throughout its various stages of growth. In the pre-seed phase, CrowdContainer leveraged personal investments from the founders to get the business off the ground, but the community also played a crucial role. Thanks to the strong involvement of local consumers, they successfully launched several crowdfunding campaigns to raise initial capital. While this was enough to start the project, CrowdContainer knew that in order to grow, they needed to take things to the next level.

Following a legal change to a hybrid model that reflected both nonprofit and for-profit motives, which included the establishment of a joint-stock company (AG) – a structure that makes raising capital easier in Switzerland – CrowdContainer completed a successful seed financing round. The raised capital was a combination of debt and equity, with the majority coming from two long-term subordinated loans. The equity portion was raised through participation from the company’s producers as well as friends and family of the founders. In this round, CrowdContainer sold 15% of its shares.

After two successful years of growth, CrowdContainer decided to set the course for the company’s long-term development by transitioning to steward-ownership, utilizing the golden share model. This structure introduced three different types of shares: A-shares for steward-owners, B-shares for veto power, and C-shares for investors. During the transformation, the existing investments were restructured so that all investors who supported CrowdContainer in the 2019 and 2022 financing rounds collectively hold 28% of the preferred shares. In a second financing round, additional capital was raised – two-thirds in equity and one-third in debt – using the same instruments. The C-shares are structured with a cap, limiting returns to three times the invested capital. CrowdContainer’s long-term goal is for all C-shares to eventually be bought back by the company. These shares are therefore equipped with a buyback option to facilitate this transition over time. 

CrowdContainer's financing structure is a testament to their commitment to sustainable growth and stewardship. By carefully selecting and structuring their financing instruments, they have successfully aligned their financial strategy with their mission, ensuring long-term stability and control.