Solidfund for the movement 2022
Mark Simmonds (Co-op Culture)
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One of the original reasons to create Platform 6 (P6) was to host a "Solidfund for the co-operative movement". Whilst we do have funds available for development (approx £5K) have disbursed small amounts and we are holding some restricted funds from other sources, this is something that hasn't really taken off. We suspect that is because our current model is based on joining P6 as a member with member subscriptions being the source of funds.
We're now looking at how the fund might work with more of a Solidfund type model - where P6 hosted and promoted the fund as a discrete thing in its own right, encouraging regular contributions. Contributors could engage with decisions around the distribution of funds, as with Solidfund, but wouldn't need to be members of P6 and engage with our wider work.
Your thoughts and suggestions would be appreciated.
Graham Wed 20 Oct 2021 7:43AM
Totally agree. Product market fit is not at all cheesy, and highly important.
John Merritt Tue 19 Oct 2021 11:49AM
My recollection is that the fund was to be a Co-operative Development Solidarity Fund for co-operative development. The what, is a fund to pay for Co-operative Development and the who (will contribute) is those who have a Solidarity commitment to the Cooperative Movement - ie co-operative businesses. I think the fit is good - though as Martin mentions Richard Bickle and Vivian Woodell haven't been able to get this through their Board's (if they have tried?).
I have mentioned at Co-op events (AGMs, Conferences etc) for some years that in Italy, since 1992, three percent of a co-op’s profits have been placed into co-operative development funds. These funds are used to help create new co-operatives, develop existing ones, and to convert private firms into worker co-operatives. It offers practical solidarity and a good way to evidence Co-operation among Co-operatives.
I think this is worth continuing as an ask individual Societies and to continue to try and get the idea adopted across the movement.
Development Coop have a Share Offer https://development.coop/share-offer/ which is aimed at Coop Development funded by individuals and it may be the Solidarity fund could get some philanthropic deposits. However, self-help within the movement seems appropriate.
Martin Meteyard Tue 19 Oct 2021 8:27PM
@John Merritt the Development Coop share offer document specifies a minimum of £75K to be raised by 11 October - was this achieved?
John Merritt Wed 20 Oct 2021 1:26PM
@Martin Meteyard the date has been put back but the document not yet changed. I am not sure of the current level and will try to get it posted in the Dev Coop Loomio thread
Mark Simmonds (Co-op Culture) Wed 20 Oct 2021 8:16AM
For clarity. There was a desire that whatever we created in terms of a common fund would be attractive to retail societies and their members. The point hasn't been reached where it was felt that there was something that could yet be marketed to that constituency. In effect what P6 has done so far has been a minimum viable product to test the ideas and process. So there hasn't been a failure to connect with retail societies as no attempt has been made.
Martin Meteyard Wed 20 Oct 2021 11:59AM
Another question: will this fund be simply a grant-making body (like SolidFund), or look at the provision of finance more widely (e.g. loans, which has also been raised as a possibility on occasion in SolidFund)? If so - or even if not - is there a connection to be made with Co-operative & Community Finance as part of this discussion? Loan finance (or a blend) may be something that retail societies would be more interested in. These thoughts arise from coming across Shared Capital Cooperative in the USA, a fund owned by and primarily invested in by cooperatives: https://sharedcapital.coop
Ian Wed 20 Oct 2021 4:49PM
I must admit that I thought that this fund was aimed very much at co-op development.
For anyone that doesn't know, the large retail societies set up and continue to support the Co-op Loan Fund which supports existing and new start co-operatives, often lending at high risk and with little security. This fund will only lend to co-operatives, has about £1.6m available to lend and is managed by Co-operative & Community Finance. I've always seen us (Co-op Finance and Co-op loan Fund), the P6 fund and Solidfund as being complementary to each other with P6 providing development expertise, Solidfund training and perhaps small grants with CCF/Co-op Loan Fund coming in to provide larger amounts of debt finance.
Mark Simmonds (Co-op Culture) Wed 20 Oct 2021 4:54PM
@Ian and @Martin the fund was originally envisaged as a grant fund to support co-op development - ie the money that could get a group to the stage of taking on loan finance. So yes it could work like the REACH fund with CCF or the ancillary developmental support for LEAP (Loans for enlightened agriculture).
However it's all up for discussion and everything is on the table.
John Merritt Fri 29 Oct 2021 2:48PM
I would like to throw onto the table that hopefully, Development Coop would provide the Development expertise rather than P6. It would be a duplication if both were offering Coop Development services. Currently, P6 and DC have two joint Directors (Graham M and Josef CD) and each co-op is a reciprocal member of each other.
John Atherton · Tue 19 Oct 2021 9:16AM
Just to add my 10p, As useful as it is to focus on: The what - "The Product" It's also useful to clarify The Who, who will contribute, why will they contribute what is the size and nature of that market. In cheezy business speak what is the "product market fit". Solidfund is built to appeal to a worker co-op type person, so be clear what type of person you want to appeal to (hopefully not the exact same type) and build a model that appeals to that type of person.