Family offices manage the wealth of high-net-worth individuals and families. Single-family offices serve one family, while multi-family offices often operate with a broader mandate, investing on behalf of multiple families. Depending on the families’ specific mandate(s), family offices can be relatively flexible in the way they invest their money and are often interested in finding investments aligned with their values. The fit with steward-ownership and aligned financing therefore largely depends on the family’s specific mandate. For some, steward-ownership and aligned financing can be a good fit and present an exciting, novel option, especially in relation to a single family’s personal financial legacy and the way they want to employ the capital available to them. However, without a fitting mandate, it may be necessary to engage directly with the wealth holder instead of the family office.

As private investors, angel investors provide early-stage funding to startups and often invest because they believe in the founder or the company’s purpose, want to be part of the next “big thing”, or simply want to support friends. Their motivations can be varied, so while some may prioritize the company’s purpose, others are driven by different reasons. Angels are often more flexible and willing to set up non-standard investment contracts and explore alternative investment structures.

Some investment funds are explicitly focused on or dedicating parts of their investments to investing and experimenting with alternative forms of financing. While some of them have a different focus than steward-ownership aligned financing, they are good candidates to approach. They have already made the decision to explore other forms of investments for specific reasons; these reasons might also interest them in steward-ownership aligned financing. This group includes investment funds focused on investing in steward-ownership aligned financing.

Impact investment funds are often described as funds designed to generate positive social and environmental impact alongside financial returns. They often have specific mandates to support purpose-driven businesses, including those using steward-ownership models. However, many impact investment funds continue to employ conventional instruments and logics and are mainly changing WHAT they invest in without critically examining the financing structures they employ.

Strategic investors provide capital to a company with the intention of not only earning a financial return but also leveraging synergies between the investor’s existing business operations and interests and the investee company. This could be furthering a specific sector, looking to develop business relations with the company or something similar. Here, the focus is on the company's purpose and business model, making steward-ownership a highly effective way to secure that mission and maintain a stable, values-aligned relationship – without the risk of the company being sold, which could bring conflicting priorities. For example, a strategic investor relying on essential software may prefer a steward-ownership aligned structure to prevent unexpected changes in control or management. Here, the focus lies strongly on the company’s purpose and business model. Steward-ownership (SO) can be a highly effective way to secure that purpose and maintain a stable, mission-aligned relationship, without the risk of the company being sold to a PE firm—only to find yourself dealing with different priorities. For example, a strategic investor relying on essential software for their business may prefer an SO-aligned structure to prevent sudden, unwanted shifts in control or management.

Foundations sometimes provide grants and program-related investments to initiatives that align with their mission. While many foundations employ VC/PE instruments and logics for their investment, in theory they are very much aligned with steward-ownership and aligned financing. They are long-term oriented and independent and exist to further a specific purpose. They are also often quite free in how they invest in companies. For many foundations, the case can be made that their broader social or environmental goals are aligned with steward-ownership aligned financing.

Philanthropic investors are individuals or organizations that provide funding to initiatives, businesses, or projects with the primary goal of creating positive social, environmental, or cultural impact rather than seeking financial returns. These investors blend principles of traditional philanthropy with investment strategies, aiming to achieve a sustainable and scalable positive impact. While most philanthropic investors are mainly focusing on the purpose and impact of the companies they are investing in, some are also particularly targeting specific ownership and governance structures.

Many government programs and public sector initiatives provide funding and support for businesses. Some of them are only employing conventional equity-investments but others are open for debt or mezzanine instruments as well – these are always worth a try.

If this path is open to you, crowdfunding and crowd investing can be very much aligned with steward-ownership aligned financing. The crowd is often close to the company and its purpose and steward-ownership can even be a case for attracting more investments. At the same time, it is quite normal to use mezzanine financing for crowdinvesting

→ See more information on Crowdfunding and steward-ownership aligned financing.

Of course, all debt providers are available for steward-ownership aligned financing so if bank loans are available to you this is a great path to pursue. Some banks are more open to treating mezzanine investments as equity-like capital and therefore sufficient security.

Of course, if grant or donations are open to you this is a great opportunity to get some working capital independent of steward-ownership.