Introducing the Startup Co-op, WE.VESTR’s turnkey equity reward feature that allows early-stage founders to flexibly set the rules for their company’s equity and turn stakeholders into shareholders without the need for a notary. That’s right, founders can use the Startup Co-op to reward equity on an ongoing basis without the constant need for notaries and paperwork.
The Startup Co-op is the digital interface of a standard Cooperative legal entity. This allows for greater flexibility in the change of ownership, profit-sharing and voting allocations. Additionally, the Startup Co-op provides founders with the freedom to determine the rules of the game; and the rules can change and evolve as a company does.
Let’s see it in action! Start by setting up the Startup Co-op in just a few easy steps:
- Contributions: These are the actions that founders can reward equity for, and they include time, cash, intellectual property and CAPEX.
- Multipliers: Founders can decide the conversion multiplier for how much equity is rewarded per contribution.
- Growth Phases: Founders can set different multipliers-per-contribution type as the company grows. For example, perhaps cash and time are most valuable in the first growth phase of a company.
Once the rules of the Startup Co-op are set, founders can begin rewarding equity contributions:
- One-Time Contributions: Quickly and easily enter a contribution and the Startup Co-op will report back the amount of equity that is due.
- Monthly Contributions: Set a monthly contribution and the system will automatically track and report on the amount of equity due to the participant each month.
- OnDemand Reporting: Best of all, founders can easily see their company contributions in a simple stakeholder overview or on a total month-to-month basis.
We believe that the Startup Co-op is the future of flexibility and liquidity in early-stage ventures. Not only does the Startup Co-op make equity simple to reward, it also enables flexibility in the venture that provides an easy way for the internal exchange of shares. We want to unlock the free flow of startup shares via an internal exchange feature — something to look forward to in future updates.
That’s it for now. Thanks for joining us to learn about the Startup Co-op, we’ll see you next Feature Friday ✌️