Entrepreneur Sean Blanchfield recently blogged about an idea for a new form of business for starts coined the "startup cooperative" -- essentially, an organization that gives entrepreneurial teams the flexibility to learn if and how well they work with one another to have a more informed equity split discussion by initially holding the startup's equity until the team is ready to have the equity discussion. This article discusses the benefits and uses of the startup cooperative idea, and identifies some of the legal challenges that would arise in attempting to establish such an organization under the current law.
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An Idea for a New Business Model? The Start-up Cooperative