Introducing Subvert's Transparent Fundraising
Traditionally, when platforms raise money, they do it behind closed doors. Founders meet privately with investors, negotiate in secret, and announce the results after the fact, if at all. The community, the very people who build value on these platforms, are the last to know.
We're doing things differently.
Today we are introducing our open and transparent funding process. We're doing everything in the daylight, and creating opportunities for our members to participate and give feedback.
Where We Are
In less than two months, Subvert has grown to nearly 2,000 members across 57 countries. We're approaching $40,000 in zine sales, but more importantly, we've created a spark. The overwhelming response to our Plan for the Artist-Owned Internet demonstrates clear validation. The world is ready for collectively-owned music infrastructure.
Our members-only forum is active and there's a sense of new possibility. We're also making great progress on the design and development of our platform. All of our work to date has been bootstrapped without investment.
Now, we need to take the next step: raising $350,000 to support the further development and launch of our V1 platform.
Why Funding Matters
Adequate funding is crucial. Bandcamp's initial funding, adjusted for inflation, was over $5 million in today's dollars. Without proper resources, platforms either die on the vine or ship subpar products. Underfunding Subvert does not serve our artists, workers, labels, or supporters.
However, we must also take a conscious approach, actively mitigating the risks of accepting funding. Fundraising and staying true to our principles doesn't have to conflict. This means investing on the right terms, within the right structure, from the right sources. This also includes implementing safeguards to ensure that cooperative control of the platform remains firmly in the hands of our members.
A Different Path
Most founders raise money in the dark because it's easier. They don't have to consider what their community thinks. They don't have to explain their decisions. They don't have to build consensus.
But Subvert isn't a typical startup. At the moment, we have nearly 2000 co-founders. We're not just users—we're co-owners.
Our goal is to raise money guided by simple principles.
Our Funding Principles
Complete transparency: All investment terms will be published openly
Community input: Members will have time for due diligence and input
Aligned capital: Priority given to enabling rather than extractive funding
Cooperative control: Safeguards to maintain community ownership
The Funding Waterfall
We're approaching funding sources in order of alignment with our values:
- Grants and arts philanthropy
- Platform revenue (ex: zine sales and discounted platform fee vouchers)
- Member investment
- Arts-focused impact investors
- Aligned individuals
- Traditional funds
We'll progress through these options starting at the most preferable funding sources, ensuring each funding decision aligns with our cooperative principles and long-term vision.
How Investment Will Work
Subvert operates through two entities that work together. Our dual entity structure:
Subvert Inc. PBC - A Public Benefit Corporation that owns the platform's codebase and intangible assets
Subvert Cooperative LCA - A Cooperative that owns 100% of the Subvert Inc.'s founding shares
Think of this structure as similar to a solo founder who owns 100% of their company's founding shares. This startup can then flexibly raise investment, including issuing new preferred shares to investors. In our case, that "solo founder" is actually a cooperative with thousands of member-owners. It's an innovative structure that allows us to maintain cooperative control while maintaining funding options. Dive deeper in our plan to read more.
Investment Mechanism
Investment will be made through a SAFE (Simple Agreement for Future Equity) in Subvert Inc. PBC - a standard startup investment vehicle that provides a familiar path for investors while also allowing Subvert to protect its cooperative control of the platform.
Timeline and Use of Funds
Our $350,000 raise will support a 6-month runway covering:
Two full-time and two part-time workers
Platform development and infrastructure
Legal compliance and operational costs
Community building and governance implementation
Key Milestones:
February 2025: Complete fundraising
Q1 2025: Platform development
Q2 2025: Public launch and beta testing of V1
Get Involved (How to Participate/ Help)
Townhalls (members only)
Join our upcoming townhalls to discuss funding (register here). We have created options to accommodate every timezone. These calls will be recorded and shared with members.
Become a member
If you have not joined already, become a member. This is one of the best ways to support Subvert.
Join the conversation
Give input and ask questions on our forum. Members, if you need a new invite link, let us know.Connect with us about funding interest
Have a lead or funding tip we should follow? Schedule a call to discuss potential funding interest with us. Book here.
Email us
Send questions to info@subvert.fm
Sincerely Ours,
Subvert