VYLD's experience

by Ines Schiller, co-founder

When we first raised capital, our product was still in development, with no initial capital beyond very limited personal funds and a stipend – no wealthy connections or established backing. Still we wanted to make sure to avoid decisions that might backfire later, namely the infamous “mission-drift”. Fortunately, we connected with angel investors and Purpose Ventures, whose investment, values and credibility attracted others.

The process was far from easy. With few templates to rely on in steward-ownership, we had to develop our own contracts and term sheets from scratch. But precisely this ownership model helped us attract the right people: steward-ownership became a powerful filter. Whether people were already familiar with the concept or it was entirely new to them, only those who truly resonated with the idea and its implications chose to move forward with us. That alignment became a key indicator of mission fit – and that was invaluable.

It’s important to note: the investors who didn’t participate weren’t necessarily uninterested. Most VC funds are bound by their LP agreements and simply can’t engage in non-equity-based financing. That ruled out many by default. We had far more success with investors who could flexibly allocate part of their capital to alternative models.

Being steward-ownership ready from day one was one of the most important decisions we made. It allowed us to avoid giving away equity early on – shares we might have later needed to buy back under difficult or expensive conditions, or worse, wouldn’t have been able to recover at all due to a loss of voting rights. The structure protected our long-term autonomy from the outset.

The development of our Future Profit Partnership Agreement (FPPA) was a true turning point. It gave us a way to raise capital on a rolling basis, with an instrument that blends the best of debt and equity: flexibility and investor upside, without ceding ownership or control. A lot of thought and effort went into its development, and making it available open-source was important to us – we wanted others to benefit from it, not start from zero  (read more in our case study).

Our biggest takeaway? With legally binding steward-ownership, you don’t just hope for alignment – you build it into the foundation. It ensures that everyone at the table truly believes in the mission, because the structure itself makes it non-negotiable. That clarity made all the difference.