Structures

Research todos

Co-op recommendations from: Cooperative Digital Infrastructure

Inside Igalia: Scaling a Co-Op Beyond 100 Members - YouTube

Interesting additional discussion on Igalia:

Notes from Adam @ Muse

I noticed Muse was incorporated as a C corp and that you raised a couple of seed rounds (crunchbase is an unreliable narrator so this might be inaccurate). In general, did you keep a relatively standard equity structure and vesting schedule for team members?

We allocated a larger equity share for our early team members and we also did two-year vesting, but otherwise it was pretty standard.

What was the promise for the seed funders? Was it all inside investment, or was the expectation of like a Wistia-style dividend/buyout?

We told them our aspiration was to eventually return dividends. But if I'm being honest, most of them were in it because (1) they liked our team and wanted to support us, especially given the relatively small amount we were asking for and (2) they considered it an option against the possibility we might decide to "go big" in the future. For #2 there are lots of examples including GitHub, Mailchimp, and Atlassian so not a wild thing to hope for that even if the company founders weren't aiming for it.

Was there specific governance in the charter (?) about partners, authority, etc or was it more of a social contract?

Closer to the latter. We didn't deviate from the standard legal boilerplate in terms of governance. But internally we had a concept of "making partner" which meant access to top-level company discussions, a chance to vote on important questions, and authority to spend money. Legal contracts that required signing (opening a bank account, employment contract, etc) would have to go to me and Mark who were the two members of the board and officers of the company.

Did y'all have a lawyer do a lot of the non-standard stuff custom? How did that go?

We worked with Carney who has done a bunch of non-standard stuff for Calm Fund. But in the end we didn't ask them for much that deviated from the normal templates, we found it easier to work more at the social contract level that you mentioned.

Compiled 2024-2-14