In a significant stride towards reshaping the economic landscape, Coop Exchange, a visionary fintech platform, has today announced the successful completion of its pre-seed funding round. This significant milestone underscores Coop Exchange’s potential as a major disruptor in cooperative and sustainable finance as evidenced by its impressive GBP 10 million valuation at this early stage. Co-operators Financial Services Limited led the investment with a contribution of over CAD 2 million, acquiring a 12.4% stake.

In January 2023, in a significant move towards redefining cooperative investment, it was announced that the International Cooperative and Mutual Insurance Federation (ICMIF) had invested and secured a board seat, held by Shaun Tarbuck, Chief Executive, during the pre-seed investment round. This strategic collaboration follows Coop Exchange’s participation in the ICMIF Centenary Conference held in Rome in October 2022, where industry experts collectively highlighted the urgent need for innovative approaches to sustainable finance.

Speaking about the launch of Coop Exchange and ICMIF’s involvement in the fintech platform, Shaun Tarbuck said: “I believe that the ground-breaking approach of Coop Exchange will champion the global growth of cooperatives and mutuals, perfectly aligning with the aspirations of ICMIF members that are looking for fresh avenues for impact investment and truly sustainable funds. The needs and values of our members align perfectly with the goals and values of Coop Exchange. I’m delighted that are working together in a spirit of cooperation to contribute to the transformation of the sustainable investment landscape.”

Cooperative capital

The aim of Coop Exchange is to revolutionise the cooperative sector by providing unparalleled access to new capital sources. As a global platform, its mission is to combat wealth inequality by facilitating investment in tradeable coop shares, fostering the growth of cooperatives and mutuals. This initiative resonates powerfully with impact investors and sustainable fund managers, aligning financial returns with tangible social impact.

Sustainable finance

Coop Exchange aims to become a regulated stock exchange, allowing cooperatives to list cooperative financial instruments: bonds; and equity, with restricted voting rights in line with cooperative values and principles but with a share of surplus. This approach not only protects investors and the cooperative movement, but also opens a new market for sustainable fund managers. The cooperative model, upheld as the most sustainable business model, will be at the forefront of this new investment era. Coop Exchange offers fund managers a unique opportunity to access this substantial market of sustainable businesses and a potential new market of private business conversions.

Speaking about the launch, Stephen Gill, CEO, Coop Exchange said: “At a time when cooperative capital is increasingly vital, Coop Exchange emerges as a distinct and crucial player, unlocking a fresh market for sustainable finance. Having Co-operators lead our pre-seed round is a testament to their forward-looking and cooperative nature, and we’re extremely pleased with this partnership.”

Rob Wesseling, ICMIF Chair and President and CEO at ICMIF member Co-operators (Canada) said: “As one of the largest impact investors in the world, anchoring financial security within positive community impact is the basis of our business model. We see our investment in Coop Exchange as a future-thinking extension of our purpose. Last year, we polled to find over 60% of our market is interested in aligning their investments with their values, however they see limited opportunities and premium costs as barriers. Supporting an exchange dedicated to businesses that reflect those values is going to break down barriers and accelerate the transition to a more sustainable economy.”

Daniel Sinclair, Co-operators, Vice President of Corporate Development & Head of Co-operators Corporate Venture Capital said: “This new platform has the potential to significantly enhance how cooperatives secure capital and the pace at which they can do so. We’re pleased to come to the table as Coop Exchange’s first cooperative partner and investor. This partnership is an opportunity to boldly demonstrate our growth and innovation strategy, our desire to see more impact-driven businesses succeed, and our commitment to the cooperative business model.”

Innovative approach

Coop Exchange says that thanks to its innovative and sustainable approach, the platform is set to redefine the landscape of cooperative investment. Its commitment to inclusive growth, sustainable development, and equitable wealth distribution positions it at the forefront of the new economic paradigm.

Coop Exchange is a startup headquartered in London, UK, with its EU office in Malta. The platform is led by a strong and experienced board from the sector, including: Ben Reid OBE, International Cooperative Alliance (ICA) Board Member; former MEP, Dame Pauline Green, ICA President (2009 – 2015); Shaun Tarbuck, ICMIF Chief Executive; and Barry O’Dwyer, Group CEO of the UK’s largest mutual and ICMIF member, Royal London.