Shaping the Future

Imagine a world where businesses are not just focused on profit but also on creating a positive impact on the environment and society. This is the vision of the Squads Member Fund. It’s a fund designed to support startups that are at the forefront of digital transformation and sustainability. As someone passionate about both innovation and the environment, I am excited to share how this fund is making a difference and shaping a better future for all.

A New Approach to Investment

The Squads Member Fund is different from traditional startup investment funds. It was established in 2013 as an extension of Squads, a company with a solid foundation and years of experience in fostering startups. The fund focuses on regenerative businesses, which are businesses that restore and renew their own sources of energy and materials, contributing positively to the environment and society. Unlike traditional businesses that may deplete resources, regenerative businesses aim to have a net positive impact on the planet and communities.

One of the key aspects of the Squads Member Fund is its community-driven approach. Members of the Squads community are not only passive investors; they actively participate in decision-making, helping to shape the future of the startups they support. This sense of ownership and involvement makes the investment process more meaningful and impactful.

Sociocratic Decision-Making

At the heart of the Squads Member Fund is a unique governance system called sociocracy. This system emphasizes non-hierarchical structures and decentralized decision-making. In simple terms, it means that everyone’s voice is heard, and decisions are made by consent. Proposals are accepted only after resolving all material objections, ensuring that every member has a say in the decision-making process.

In practice, this means that inside Squads, anyone can join the General Circle, the main authority responsible for facilitating processes and maintaining rules. Decisions are made collaboratively, ensuring that all members are on board and any concerns are addressed. This approach fosters collaboration and ensures that decisions are fair and inclusive.

Real-World Impact

One of the most exciting aspects of the Squads Member Fund is seeing the real-world impact of its investments. Take BOAS, for example. BOAS is an online vintage fashion platform that addresses the environmental harm of fast fashion by offering a quicker and more efficient shopping experience for vintage denim. What’s more, BOAS donates 90% of its profits to life-saving charities, combining the convenience of fast fashion with the benefits of second-hand clothing. This innovative approach not only reduces waste but also supports important causes, exemplifying how regenerative principles can be successfully integrated into business models.

Supporting Innovative Startups

The Squads community has an impressive track record of helping startups succeed, significantly reducing investment risks. Their extensive experience in nurturing startups means that they know how to guide new ventures to success. Over the past decade, Squads has supported a wide range of startups, each with its own unique story of success. From Vandebron, the fastest-growing energy company in the Netherlands, to StackState, an infrastructure management tool for enterprises, and Bridal Live, the leading PoS and planning software for bridal shops in the US, Squads has played a crucial role in helping these companies thrive.

Another standout example is Flo, an energy startup in Singapore and Australia, founded by one of the Vandebron founders.

How It Works

The Squads Member Fund operates by offering early-stage funding and resources to startups. Here’s how it works:

• Investors reduce their risk by not bearing direct operational startup risks and receive priority options to invest in chosen startups. They can buy and sell certified shares through a market system.

• Squads Member Fund provides early-stage funding and Squads resources to startups. It is incorporated in a Dutch BV+STAK, where all shares are owned by the STAK, and certificates can be freely traded between members and the BV. When there are no sellers, the fund can sell certificates from the pool at a minimum price controlled by the fund members. 

• Squads develops and markets startup products but startups are not obligated to use Squads’ services, ensuring flexibility and avoiding vendor lock-in. From a legal standpoint, Squads is just another startup the fund invested in. The communities are tightly knit together on purpose, but both can survive independently, and the startups are decoupled from each other.

• Startups receive funding and resources to build a product in exchange for equity shares. They are coached to build in a Lean-inspired process, ensuring a structured path from the pre-MVP stage to market success.

This model ensures a healthy spread of risk and maximizes impact by involving all key stakeholders in a collaborative and supportive environment.

The Value of Investing 

Investing with the Squads Member Fund means reducing risk while maximizing impact. The fund’s unique structure and the Squads community’s deep experience in startups ensure that investments are in capable hands. With experts who know how to make startups successful taking care of execution, the likelihood of achieving positive outcomes is significantly higher.

The focus of the Squads Member Fund is both financial returns and also  creating a positive impact. By supporting startups that align with core values of sustainability and social impact, investors can help shape a better future. The fund’s emphasis on regenerative business models ensures that investments contribute to a healthier planet and more equitable society.

The sociocratic decision-making process also allows all the investors – even very small ones – to have a say in the direction of the fund, making them active participants in the journey. This level of involvement ensures that decisions are made collaboratively and inclusively, enhancing the overall investment experience.

Join the Movement

In conclusion, the Squads Member Fund represents a new way of thinking about investment. It’s about supporting innovative startups that are making a positive impact on the world, fostering a sense of community and collaboration, and ensuring that investments contribute to a sustainable and equitable future. As someone passionate about both innovation and the environment, I am proud to be part of this journey and excited about the possibilities it holds for building tomorrow, today.

For more information and to get involved, visit the Squads Member Fund page and learn how you can be part of this transformative journey. Together, we can make a difference and shape a better future for all.