Comment by ixxie
8 hours ago
I've long been suspicious of the conflicts of interest induced by exit-orientated investment models.
I'm curious if you think cooperative businesses leveraging non-voting preferred shares, community shares and other coop investment instruments are more resilient against this type of corruption.
I'm wonder how you see the tradeoffs these models have against traditional LLC/VC models and how you would mitigate them.
I hate the word "exit" altogether. It's only the investors who are leaving Middle Earth; the rest of us are still try to make this thing work.
I address your question in much more detail in the book, using examples as varied as Mondragon in Spain, John Lewis Partnership in the UK, and Vanguard and credit unions here in the US.
We actually have pretty good evidence that these other structures are more resilient and more stable than the classic "best practices" we have all been indoctrinated into.
Unfortunately, most of us have been told that these approaches are incompatible. You either go "big" and try to make a lot of money, have investors, have a grand vision, etc. Or you go "small" and do something "ethical" and non-extractive. So many of us have been taught that it is the fate of the small to be destroyed by the big, since they are more ruthless and more powerful.
But the evidence doesn't really support this just-so story. My goal with the book is to help those who want to build mission-driven companies to realize that this is a source of strength, not weakness, and act accordingly.
Thank you, I'm happy to hear you address these models and will definitely be reading your book!
I think we need a "middle path" culture that finds a good balance between these pressures and values.
Did you look at Patagonia Inc. as an example? I wasn't aware of the new book but am more interested in it now.
oh yes, they are the lead case study in Chapter 7
> So many of us have been taught that it is the fate of the small to be destroyed by the big, since they are more ruthless and more powerful. But the evidence doesn't really support this just-so story.
This is the comment I came here to read. Thank you, I already have a copy of the book and intend to dig in more on these themes specifically.
thank you!