Cooperatives can use Startnext to build their community, finance startup or restructuring phases, and, under certain conditions, recruit members through cooperative shares. Special legal and economic guidelines apply to cooperative shares. Therefore, be sure to discuss your project with Startnext early on.
Can my cooperative launch a crowdfunding campaign on Startnext?
Yes. A cooperative can run a crowdfunding campaign on Startnext. In particular, the following are possible:
- Unconditional Support
- Thank-You Gifts Without a Cooperative Share
- financing for start-up, renovation, or equipment costs
- Community Building and Member Recruitment
- Cooperative shares under the conditions described below
The community aspect must be the focus. The campaign must not be structured as a traditional investment offering promises of interest or dividends.
What are the requirements for cooperative shares?
If you offer cooperative shares through Startnext, the following guidelines apply:
- The cooperative has been established, or its formation is expected to be completed during the crowdfunding campaign.
- A cooperative share offered through Startnext may not exceed €1,000. Shares between €100 and €500 are recommended.
- The share may not be advertised as an investment.
- No interest payments or dividend distributions may be promised.
- You must comply with the restrictions on public offerings and prospectus requirements that apply in your country.
- Prospective members must be provided with the essential information regarding the cooperative share before the contract is concluded.
The €1,000 limit is a Startnext guideline. It ensures that community involvement and member recruitment remain the top priorities.
Does the cooperative have to be established before it starts operating?
It is not mandatory to do this before the funding phase begins. However, we recommend that you have already established the cooperative or ensure that its registration is completed in time before the funds are collected and disbursed.
To launch the project, you’ll need the organization’s master data as well as personal verification of the person initiating the project and, as a rule, one or two board members. The final data and supporting documents must be submitted before any funds are received or disbursed. These may include:
- Entry in the Cooperative Register
- Proof of Incorporation and Authorization to Represent the Company
- documents from the tax office, if applicable
- if applicable, proof of the organization's address
Verification and payment processing are handled by Stripe. Startnext cannot hold the funding amount in escrow indefinitely after the project is completed. If registration is still pending during the campaign, please clarify the timeline and required documentation with us in advance.
Can I finance the startup without offering shares?
Yes. You can run a traditional crowdfunding campaign with voluntary contributions or thank-you gifts to finance, for example, consulting services, registration, equipment, renovations, or other startup costs.
The subsequent admission of members or subscription to cooperative shares may then take place outside the campaign. For this form, the specific share limits apply only to the extent that cooperative shares are actually offered to the public.
What are the financing limits for cooperative shares?
According to our current internal guidelines, the following thresholds apply to public offerings without a prospectus within a twelve-month period:
- Germany: 100,000 €
- Austria: €750,000
- Switzerland: 8 million CHF
These amounts refer to the cooperative shares offered. Voluntary contributions or traditional tokens of appreciation are not included in this total share amount.
The legal thresholds are based on a 12-month period, not the calendar year. Before you begin, check to see if any legal limits or requirements have changed. This article is intended to provide general guidance and is not a substitute for legal advice.
How is the €100,000 threshold calculated in Germany?
The German limit applies to the total amount of cooperative shares that your cooperative, as the issuer, offers through all distribution channels within a twelve-month period. It is not limited to Startnext.
Here’s an example: If your cooperative offers €50,000 in shares via Startnext and an additional €60,000 offline or through another platform within twelve months, the total amount is €110,000. This exceeds the €100,000 limit.
Therefore, be sure to also consider any ongoing or planned campaigns outside of Startnext.
What happens if the cooperative shares span state lines?
Contact Startnext before the project begins. For projects exceeding €100,000 in Germany or exceeding the respective threshold in Austria or Switzerland, individual arrangements and consultation are required.
Do I need a sales prospectus or an investment information sheet?
That depends on the country, the total amount, the structure, and the distribution channel. In Germany, the de minimis rule under the German Investment Act may apply to offers totaling up to €100,000 within a twelve-month period.
Even if there is no requirement to provide a prospectus, the cooperative’s board of directors must ensure that prospective members receive all material information about the cooperative share before the contract is concluded. The communication must also state that there is no requirement to provide a prospectus.
Have the specific details reviewed by a lawyer before publication. This is especially important for larger volumes, offers in multiple countries, or planned financial returns.
Can I promise interest or dividends?
No. Cooperative shares on Startnext may not be advertised with promises of interest or dividends. The focus is on community participation, membership, and the cooperative’s impact—not on a financial return.
If dividends or other investment incentives are a significant part of the offer, the project in its current form is not suitable for the standard Startnext model and must be reviewed on a case-by-case basis.
Can I offer shares worth more than €1,000?
Not as a regular cooperative share through the Startnext campaign. On Startnext, individual shares are capped at €1,000; the recommended amount is between €100 and €500.
If your cooperative would like to offer larger equity stakes, the subscription must be organized outside the regular campaign and reviewed from a legal perspective. Check with Startnext in advance to determine how campaign communications and the potential crediting of support can be structured.
What information should my campaign include?
Describe this clearly and in a way that is easy to understand:
- Purpose and Activities of the Cooperative
- Current Incorporation and Registration Status
- Use of the Funding Amount
- Membership Terms and Conditions
- Amount and Number of Shares Offered
- Members' Rights and Responsibilities
- Subscription and Admission Process
- Applicable national border and shares already offered elsewhere
- Note regarding the absence of a prospectus requirement, if legally applicable
- Procedure to Follow If the Formation or Registration Is Not Completed on Time
Avoid promising returns and make it clear that the focus is on the community and membership.