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FAQ

Funding

How is Subvert funded?

Subvert has raised $650,000 in investment from community members who share our vision for collective ownership. This funding allows us to build a high-quality platform while maintaining our cooperative principles.

VIEW INVESTMENT TERMS

VIEW OUR STRUCTURE

Our Investors:

  • Garry Elevator (John Garry) Supporter-Member, Brooklyn - $600,000
  • w0rmw00d, Artist-Member, Oakland - $10,000
  • Harry Lachenmeyer, Supporter-Member, London - $5,000
  • Jason Prado, Supporter-Member, San Francisco - $15,000
  • Artist-Member, Berlin - $20,000

Before this, the project was initially supported by two fellowship grants totaling $35,000 awarded to founder Austin Robey:

  • $15,000 from IDEO CoLab's Creative Residency Program (May 2024)
  • $20,000 from Center for Cultural Innovation's AmbitioUS initiative (October 2024)

As of July 2025, we also earned $125k+ in revenue from selling our zines.

What is Subvert's position on funding?

Subvert recognizes that adequate funding is necessary to build a high-quality platform, but we approach fundraising carefully:

  • We seek funding transparently, with community input
  • We implement safeguards to preserve collective ownership and control
  • We accept funding through inclusive decision-making processes
  • We aim to align interests between users and investors
  • We prioritize non-extractive funding sources where possible

Our goal is to raise only what's needed while maintaining our cooperative principles.

An underfunded project doesn't serve anyone. Artists need high-quality, resilient services, and workers deserve fair compensation to avoid burnout. Adequate funding is essential to create a platform that truly meets the needs of our community while ensuring the well-being of those building it.

Any future funding will be approved by our democratically elected board representing artists, labels, supporters, and workers.


Frequently Asked Questions

What is a SAFE? A SAFE (Simple Agreement for Future Equity) is a common investment instrument used by startups. Instead of giving investors immediate ownership shares, a SAFE gives them the right to receive shares later when certain events happen (like a larger funding round). Think of it as an "IOU" for future ownership rather than immediate ownership.

How much of Subvert do investors own? Currently, investors don't own any percentage of Subvert. The SAFE agreements give them rights to future shares, but those shares haven't been created yet. The Subvert Cooperative owns 100% of the corporation that holds the platform. When/if the SAFEs convert to actual shares, investors would own a portion of the corporation, but the cooperative would still maintain control.

How does investment work in the co-op?

Investment doesn't go directly into the cooperative - it goes into Subvert, Inc., the corporation that the cooperative owns 100%. Here's how it works:

  1. The Structure: Subvert has two legal entities:
    • Subvert Cooperative (owned by artists, supporters, labels, and workers)
    • Subvert Corporation (owned 100% by the cooperative)
  2. Where Investment Goes: Investors put money into the corporation through SAFE agreements, giving them rights to future shares in that corporation.
  3. Who Stays in Control: Even though investors have rights to future shares in the corporation, the cooperative maintains control because:
    • The co-op owns 100% of the corporation's voting shares
    • The corporation's board consists of the same elected representatives from the co-op board
    • The corporation contracts the co-op to build and operate the platform
    • All major decisions go through the co-op's democratically elected board
  4. Why This Structure: This allows us to access traditional startup funding while preserving community control. Investors can participate in the financial success of the platform, but they can't override decisions made by the community of users who actually create value on the platform.

Why did you structure investment this way instead of traditional equity? Our dual-entity structure (Cooperative + Corporation) allows us to accept traditional investment while preserving democratic control. This means investors can participate in financial upside, while not being able to override community decisions about how the platform operates.

How do you prevent investors from taking control?

Several safeguards protect community control:

  • Current ownership: The cooperative owns 100% of the corporation's voting shares
  • Unified governance: The corporation's board consists of the same elected representatives from the co-op board - they're literally the same people
  • Future dilution protection: At our next funding round, we intend to create a dual-class share structure (similar to what Mark Zuckerberg has at Meta) that gives the cooperative enhanced voting rights, ensuring we can't lose control even as we issue more shares to investors
  • Structural separation: Our legal structure separates financial participation (investors) from operational control (community)

What's the "Shared Earnings Agreement"? If our SAFE doesn't convert to equity within 2 years, investors start receiving quarterly payments based on 25% of our profits. They receive payments until they've gotten back 4x their investment, then the SAFE terminates. This preserves the co-op's optionality for whether or not we choose to seek additional funding - or allow the SAFE notes to convert to equity. This means that even if the co-op decides to not raise funding again, we still have a way to extend a return to investors that have taken a risky bet on us.

Will you raise more money? We may raise additional funding in the future, but only with approval from our democratically elected board and only on terms that preserve community control. And only if we need to. We prioritize building a sustainable, profitable business over maximizing fundraising.