Not a co-op, but similar: I'm working on an owner-operated SaaS incubator[0]. A few of us are pooling our own money to buy, operate, and grow a small SaaS company together. We're currently in the diligence phase.
It's an experiment and could fail spectacularly. But if it's successful then we'll finally own our own success and build wealth for ourselves, not VC or PE funds.
I think as long as you need some capital then co-op is not for you. You have to make sure that you already have a sound business, but most likely you will work alone as a LLC.
In the past: everyone wanted the easy money. There’s probably a good opportunity for this now given tech layoffs and the pivot to AI. The best model is probably a variant of FOSS + paid support/consulting/hosting. I think I came across a couple of co-ops doing this in the past but they didn’t heavily advertise their structure.
Nobody will get rich from it but you could build a decent life.
Small companies don’t need to work together for the economies of scale. There are companies called PEOs including YC company Rippling.
Basically you are “co employed” by your company and the PEO. For all day to day stuff, you work for your company, for the purposes of taxes, insurance, etc you work for them.
When it comes to software specifically, there are a couple advantages of capitalist ownership:
1. Access to cash. While software does not require much physical capital (factories, equipment, raw materials, etc) those with capital have easier access to cash and can therefore scale much quicker.
2. Intellectual Property. In software industry, workers do not just use capital to make finished goods. They produce new capital out of their imaginations and that capital (which lasts 120 years, never breaks down, never deteriorates) is typically owned those who put up the cash. That makes their advantage grow over time.
None of that is insurmountable, but we are a long way from having the organization or political support to overcome them.
Not a co-op, but similar: I'm working on an owner-operated SaaS incubator[0]. A few of us are pooling our own money to buy, operate, and grow a small SaaS company together. We're currently in the diligence phase.
It's an experiment and could fail spectacularly. But if it's successful then we'll finally own our own success and build wealth for ourselves, not VC or PE funds.
[0] https://www.notion.so/notventurescale/Wild-Built-Incubator-2...
I think as long as you need some capital then co-op is not for you. You have to make sure that you already have a sound business, but most likely you will work alone as a LLC.
In the past: everyone wanted the easy money. There’s probably a good opportunity for this now given tech layoffs and the pivot to AI. The best model is probably a variant of FOSS + paid support/consulting/hosting. I think I came across a couple of co-ops doing this in the past but they didn’t heavily advertise their structure.
Nobody will get rich from it but you could build a decent life.
Edit: found a list, posted here https://news.ycombinator.com/item?id=47364221
Small companies don’t need to work together for the economies of scale. There are companies called PEOs including YC company Rippling.
Basically you are “co employed” by your company and the PEO. For all day to day stuff, you work for your company, for the purposes of taxes, insurance, etc you work for them.
https://www.rippling.com/products/hr/peo
Some games company's have been - Motion Twin for example. I'm sure they exist in Tech too, but that's just a feeling.
When it comes to software specifically, there are a couple advantages of capitalist ownership:
1. Access to cash. While software does not require much physical capital (factories, equipment, raw materials, etc) those with capital have easier access to cash and can therefore scale much quicker.
2. Intellectual Property. In software industry, workers do not just use capital to make finished goods. They produce new capital out of their imaginations and that capital (which lasts 120 years, never breaks down, never deteriorates) is typically owned those who put up the cash. That makes their advantage grow over time.
None of that is insurmountable, but we are a long way from having the organization or political support to overcome them.
Software don't scale like agriculture (where coop thrives).
10 organized farmers function like a big efficient farm.
10 app creators won't be the same as 1 huge platform.