Names and commercially sensitive information has been removed from the case studies.
Partial Community Exit
Industry: Superannuation
Background: An ethical investment (no coal, tobacco etc) superannuation business took upfront Angel investment when it was established 5+ years ago. The business has grown well and expects to do so into the future. However, some of the early money in was looking for a way out of some of their investment. The existing options of an IPO, Tradesale or private sale were considered.
Our Idea: The exit of an Angel investor was a great opportunity for member to buy-in. Members of the superannuation fund could elect to invest a portion of their funds under management in the management fund. This aligns incentives for members and the fund managers who work for the members in growing their superannuation.
Our Services: Custom Consult
Leveraging Grant Funding
Industry: Agriculture
Background: A client wanted to map and plan out an industry business plan for 1000x increase in this specific oilseed. The client had a solid 30 year track record but insufficient funds to engage expertise needed to create such a plan.
Our Idea: Using Federal Government funds aimed at primary producers collaborating with one another we were able pitch and secure a grant on behalf of the client for $200,000. The grant money allowed the creation of sophisticated financial and capacity planning, structure and growth of opportunities for this oilseed into the future. With the grant in hand, the client was able to secure our services and those of lawyers, accountants, marketers and researchers. They were able to secure lines of supply that they otherwise would not have been able to afford.
(Unfortunately the 2018 crop failed from an agronomic perspective in the 2018 drought. 2019 is looking better)
Our Services: Outcomes based billing
Creating Hybrids: Companies With A Democratic Constitution
Industry: Innovation (Female Founder and Social Venture Incubation)
Background: Client had conceived of a social enterprise incubator for women-led businesses. In the process discovered that the business structure they intended to use was not fit for purpose.
Our Idea: A structure was suggested, researched, then created which allowed the business to do what it needed. This included providing a democratic constitution that limited each shareholder to a single voting share. This structure allowed for impact investors to invest in the space via non-voting shares, low or no interest loans and even converting deeds. It also provided for shared-services and lower ongoing costs in the establishment of each new micro enterprise. The structure that was created was a “hybrid” taking the capital tools and familiarity of an unlisted public company (Corporation) and customising the constitution to be Co-operative-like. The novel constitution complete with active membership, 1-member 1-vote and associated Co-operative principles made the structure “fit for purpose” for the members, investors and day-to-day operation.
Our Services: Custom Consulting
Building Smart Contracts For Deferred Payment
Industry: Startup Ecosystems
Background: Making commercial arrangements as ventures emerge is always a tricky issue. Having “nothing” represent the understanding of various parties make little sense and having a legally binding agreements is unrealistic too. As such, there was a need for something that acts as a negotiation tool that could later help create contracts more easily.
Our idea: We started with a need as identified by incubator.coop to help members negotiate pre-formation arrangements that the Co-op could take forward once it was formed. We created an interface that dealt with the commonly required types of agreements. We got legal advice on wording and indemnities that meant the agreements were not legal in nature, but merely obligations of membership. Later we coded the process into a smart contract that talks to the Ethereum network. We have subsequently introduced this and other ideas more broadly across the startup and Co-operative ecosystems.
Our Services: We provided custom project management on a part paid, part equity relationship.