Case Study VYLD

Founded in 2021, VYLD is a German profit-for-purpose startup dedicated to empowering menstruators worldwide while championing radical sustainability.

Strategically, they designed their financing structure to facilitate a future transition into steward-ownership, incorporating a mix of investors and a crowdfunding campaign. In their second financing round, VYLD worked closely with investors to convert subordinated loans into a “Future Profit Partnership Agreement” (FPPA) based on profit participation certificates. This new financial instrument, while not involving the sale of shares, still qualified as equity, enabling VYLD to access subsidies and bank loans. VYLD successfully transitioned into steward-ownership in late 2022 using a golden share model and demonstrates the potential of addressing complex questions around ownership, power, and financing before entering the first financing round.