Put focus onto yourself and why you are pursuing this type of capital and company model.
At the same time, avoid making it a big issue but rather a matter of course, something natural and present it with confidence.
Investing in steward-ownership opens the door to a new kind of finance, with a different investment logic, incentives and relationships.
The long-term goal of an investment in steward-ownership is that investors receive a fair, risk-adequate return and the company can use the invested capital to stay self-determined, continue on its journey and further its purpose.
The goal isn’t a conventional exit, but rather to provide liquidity for investors through structured exit mechanisms — allowing them to exit without requiring a sale of the company and while preserving the company’s integrity.
The investment structure sets up the way that investor returns are determined. Investors can receive high, fair and risk-adequate returns.
Steward-ownership-aligned financing can be implemented using various financing structures, from specific forms of non-voting equity, mezzanine instruments to debt.
While the entrepreneurial control remains with the stewards of the company, investors can be and often are involved in decision-making.
Steward-ownership creates a structure for companies in which all stakeholders – including investors – are aligned towards the purpose of the company.
While the term steward-ownership may be relatively new, the concept has been around for a long time – and many companies built on these principles have thrived successfully. Think of Danish pioneers like Novo Nordisk and Carlsberg, or German examples like Bosch and Zeiss – just to name a few.
Steward-ownership is already in demand today and will become more and more popular among companies. The demand exists and more and more companies won’t be pursuing any other form of financing. More and more funds will realize they can’t be part of the financing rounds of really interesting companies and entrepreneurs anymore. So now might be the right moment to ask: how – and if – this model could fit into their investment logic. Because if they want to support the next Patagonia, they may need to evolve before the market moves on without them.
As mentioned, some investors just won’t be able to invest in steward-ownership-aligned financing today. So it is the more crucial that emerging funds are starting to integrate the possibility of steward-ownership-aligned financing directly into their new fund structures.
