Co-operators leads investment into startup Coop Exchange
Co-operators leads investment into startup Coop Exchange | Insurance Business Canada
Insurance News
Co-operators leads investment into startup Coop Exchange
More than $2 million invested by Canadian cooperative
Insurance News
By
Terry Gangcuangco
Canadian cooperative Co-operators Financial Services, which has more than $58 billion in assets under administration, has invested more than $2 million in London-headquartered fintech startup Coop Exchange.
“As one of the largest impact investors in the world, anchoring financial security within positive community impact is the basis of our business model,” said Co-operators president and chief executive Rob Wesseling, whose camp acquired a 12.4% stake in Coop Exchange, in a release announcing the results of the startup’s pre-seed funding round.
“We see our investment in Coop Exchange as a future-thinking extension of our purpose,” Wesseling continued.
“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.”
The goal of Coop Exchange is to become a regulated stock exchange that will allow cooperatives to list cooperative financial instruments with restricted voting rights in line with cooperative values and principles but with a share of surplus.
Coop Exchange said its mission is to combat wealth inequality by facilitating investment in tradeable coop shares and fostering coops and mutuals’ growth.
“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,” Coop Exchange CEO Stephen Gill said.
“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.”
Co-operators Corporate Venture Capital head Daniel Sinclair added: “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.”
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