Alternative Exit #37 | Redesigning Capitalism : How Share Tribe Built A Purpose-First Company

Alternative Exit

What happens when a tech startup realizes that traditional venture capital doesn't align with its mission to democratize platform ownership? In this episode, I sit down with Juho Makkonen, co-founder and CEO of Sharetribe, a Finnish marketplace-building platform that made the bold transition from venture-backed startup to steward-owned company in 2018. Juho shares how a chance encounter at a post-Burning Man event sparked a structural revolution that would preserve Sharetribe's independence and purpose for generations.

We explore the practical realities of steward ownership - from negotiating with skeptical investors to creating a governance structure where 19 employees now hold equal voting power. Juho opens up about the unexpected challenges of democratizing decision-making, the financial mechanics of capped returns, and how this alternative ownership model became a competitive advantage in hiring purpose-driven talent. This conversation reveals what it truly means to put mission before profit and the tangible steps any founder can take to protect their company's values in its legal DNA.

Timestamps:

00:00 Introduction and Guest Overview
01:50 What is Steward Ownership?
03:16 Sharetribe's Origin Story and Early Mission
10:17 The Accidental Discovery of Steward Ownership
12:50 Difficult Conversations with Venture Investors
16:40 The Purpose That Drives Democratized Platform Ownership
19:22 The Financial Structure: Capped Returns and Share Classes
24:21 Self-Governance and Democratic Decision-Making
31:18 Profit Distribution and Employee Equity
36:05 Taking Employees on the Ownership Journey
38:17 Low Attrition and Cultural Alignment
40:06 Quick Fire Questions

Key Takeaways:

• Steward ownership combines two core principles: purpose over profit and self-governance by people connected to the company's mission
• The transition began when Sharetribe realized they couldn't credibly advocate for platform democratization while being venture-backed
• Investors were initially resistant but agreed to a buyout structure when shown it wasn't the company's "golden ticket" opportunity
• The financial model uses different share classes - voting shares for employees (no economic rights) and investor shares (no voting power, capped 5x returns)
• The structure serves as a powerful hiring filter, attracting mission-aligned talent while deterring profit-only motivated candidates
• Employee tenure averages 8+ years with minimal voluntary turnover, demonstrating strong cultural alignment

About Juho Makkonen:

Juho Makkonen is the co-founder and CEO of Sharetribe, a Finnish marketplace platform that enables anyone to build their own online marketplace. Under his leadership, Sharetribe transitioned from a traditional venture-backed startup to a pioneering steward-owned company in 2018. The company is now owned by 22 team members and funded by its customers - over 1,000 marketplace founders from 70+ countries. Juho is passionate about democratizing platform ownership and creating alternatives to extractive business models.

Connect with Juho:

Website: www.sharetribe.com
Blog: www.sharetribe.com/balanced
LinkedIn: https://linkedin.com/in/juhomakkonen

Connect with Andy Farquharson:

LinkedIn - https://linkedin.com/in/andyfarquharson/
Instagram - https://instagram.com/andyfarq
Website - https://abettermonday.me/
Email - [email protected]