Introduction to Exit to Community
Exit to Community (E2C) represents a fundamental shift from traditional startup exit strategies. Instead of selling to the highest bidder or going public, E2C enables companies to transition ownership to their users, workers, and communities.
Core Principles
Community Ownership: Users and stakeholders become actual owners of the platforms and services they depend on.
Democratic Governance: Decision-making power is distributed among community members rather than concentrated in the hands of a few.
Value Alignment: The organization’s mission remains aligned with community values rather than solely focused on financial returns.
Sustainability: Long-term community benefit takes precedence over short-term profit maximization.
Why Exit to Community?
Traditional exit strategies often result in:
- Mission drift as new owners prioritize profit over purpose
- Loss of community input in product development
- Extraction of value from the community that built the platform
- Potential shutdown or radical changes that harm users
E2C offers an alternative that:
- Preserves the organization’s original mission
- Ensures community voices remain central to decision-making
- Keeps value creation within the community
- Provides long-term stability and sustainability
Getting Started
Interested in exploring E2C for your organization? Consider:
- Assess Readiness: Evaluate your organization’s maturity and community engagement
- Explore Models: Research different cooperative and community ownership structures
- Legal Framework: Understand the legal requirements and options in your jurisdiction
- Community Engagement: Begin conversations with your user base and stakeholders
- Implementation Planning: Develop a transition strategy that works for your specific context
Learn More
Explore our case studies to see real-world examples of E2C transitions, and review our legal snippets for practical frameworks and documentation.