Visa enabled small businesses to control

[Noyonhasan630]

For years now, I’ve been working with tech startups that are trying to build on the long tradition of cooperative business–businesses owned and governed by the people who use them, rather than outside investors just seeking to turn a profit. This isn’t easy, because the dominant venture capital investment model encourages centralized power and centralized benefits above all else. VCs push companies to “exit” into either an acquisition by a bigger company or an IPO on Wall Street. Lately, my collaborators and I have been working to advance the possibility of a new option: “exit to community,” or E2C for short.

Exit to Community (E2C)
In the E2C vision, successful startups would aim toward becoming owned not by a new round of speculative investors but by the people who love and rely on them. This isn’t as out-there as it might sound. Since the 1970s, thousands of companies have become employee-owned through Employee Stock Ownership Plans (ESOPs), often using bank loans special database that don’t cost employees a cent upfront. Cooperative businesses like Ace Hardware and the original national-scale networks. New blockchain-based tokens could introduce even more possibilities for enabling users to co-own their tech.

As the E2C idea spreads, I have started to worry about how some are interpreting it. When people think of communities owning companies, more and more, they think of something like GameStop — swarms of small investors pumping and dumping stock on apps like Robinhood. That is not what I mean. I do not hope for a world where we are all crypto day-traders; that’s a job best left to well-governed robots. Finance is hard, single-minded work mostly detached from reality. And in decentralized finance (or DeFi), as in most financial markets, a few players will likely reap most of the wealth.