Case Study Mogli

Mogli is more than just an organic snack brand — it is a company with a purpose. Through its organic and Demeter-certified snacks for children aged three and above, and even more through its expanding initiative around nature-related activities, Mogli aims to transport its core message to kids: grow wild & free, reconnect with nature and be ready for adventure.

Although the founders always viewed themselves primarily as stewards of the company’s mission rather than financial owners, Mogli was initially founded as a standard GmbH (German legal form of a limited liability company) for practical reasons. Over time it became clear that the structure of a standard GmbH did not fully align with the company’s long-term vision. As Mogli transitioned into a growth phase and for the first time had to determine the use of its profits, the need for a new ownership model became more evident — one that empowered employees, ensured the companies’ long-term independence with the mission at its core, while still allowing a compensation of the incurred founders’ contributions. Hence, Mogli transitioned into steward-ownership with the veto-share model by the Purpose Foundation (a legal workaround to implement steward-ownership when there is no appropriate legal form available, find more information here) and Purpose Evergreen Capital (PEC) providing the required aligned capital in return for redeemable shares. With this the abovementioned objectives were successfully achieved, ensuring both financial stability and mission integrity.

This article highlights two key insights that helped establish a fair and future-proof approach to structuring founder compensation and investor returns — for the benefit of the founders, investors, and the company, both now and for future generations:

1. Founder Compensation: A balanced approach that acknowledged the founders’ contributions while safeguarding the company’s financial health. This included a one-time payment based on the difference between actual and fair wages, as well as any private contributions provided to the company. Additionally, a potential future compensation was integrated, tied to the company’s long-term growth.
2. Investor Return: An approach inspired by conscious contracting ensured that investor returns were adequate while remaining aligned with the company’s financial capacity. To account for market fluctuations and company performance, an adjustable dividend model was introduced alongside a stable base dividend.

Since providing capital to steward-owned companies is still far from being the norm as most investors require control over the company in return for their capital, this article aims to provide greater transparency on how such models can be structured to benefit both founders and investors.

Read the full case study by Purpose Evergreen Capital in the link below.