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FAQ

Ownership and Organizational Structure

Subvert is currently incorporated as a Limited Cooperative Association (LCA) in Colorado. We plan to evolve into a dual-entity structure comprising:

  1. A Cooperative (the Subvert Co-op): Owned by artists, labels, supporters, and workers, responsible for platform development and operation.
  2. A Corporation (the Subvert Corporation): Owned by the Subvert Co-op, which will hold the platform's intellectual property.

This structure aims to combine collective ownership with the ability to pursue traditional fundraising.

Why is Subvert planning this dual-entity structure?

The planned dual-entity structure aims to allow Subvert to:

  • Maintain collective ownership and control over the platform
  • Pursue traditional fundraising for development and growth without compromising cooperative principles
  • Provide legal clarity and protection for all stakeholders

How will Subvert ensure financial transparency?

Subvert plans to ensure financial transparency through:

  • Regular financial reports accessible to all Co-op Members
  • Real-time metrics available through an Ownership Dashboard on the platform
  • Discussion of financial performance at Quarterly Town Halls and Annual Meetings
  • Clear communication about how funds are used and distributed

How will Subvert's structure protect it from being sold or abandoning its mission like other platforms have?

Subvert's planned structure will provide several layers of protection:

  • The Subvert Co-op will own 100% of the common shares in the Subvert Corporation, giving Co-op Members significant control in all major decisions
  • The dual-entity structure will preserve user control in the Subvert Co-op, while any future investor influence would be limited to the Subvert Corporation
  • Clear mission and values will be embedded in Subvert's organizational structure and governance processes, empowering Co-op Members to hold it accountable

What happens if Subvert needs to raise more funds in the future?

If Subvert needs to raise further funding:

  • The Subvert Corporation could issue preferred shares to investors without affecting the Subvert Co-op's day-to-day control over the platform
  • Any decision to raise significant funding would likely involve input from and the approval of Co-op Members
  • Alternative funding methods, like community bonds, might be explored
  • Subvert would remain committed to seeking funding from sources that align with cooperative values

Note: This dual-entity model is our current plan and will be refined in detail in consultation with our expert advisers in the final quarter of 2024. We're committed to keeping our members informed of any changes or updates to this structure as we progress.

For more information, read our Plan for the Artist-Owned Internet.