Home / Ownership patterns
Who owns what a builder makes?
How a company is owned decides who decides, who shares in the value, and whether the know-how stays where it was made. Here are five common patterns side by side, in plain language.
Questions worth asking before you sign anything
There is no best pattern for everyone. These questions help you see what you are really agreeing to.
If you are building
- Who holds the votes in five years, if we raise money twice more?
- What happens to the code, data and designs if an investor sells their stake?
- Can the people who built this share in the value they create? How?
- What can the company never do without my consent? Is that written down?
- If I want to come home, or go abroad, does my stake and my say stay with me?
If you are backing
- What return am I really asking for, and over how many years?
- Do I need a way to sell, or am I content to be repaid from the company's receipts?
- Am I comfortable with votes that I will not hold?
- Which law governs this structure, and who can enforce it where the builders live?
- What does a good outcome look like for the builders, and have I asked them?
Our stance
We lean toward shared ownership, and we say so
Investing In Africans favours governance where voting control stays with active builders and stewards, and where investors are rewarded fairly without forcing a sale. We think that is how know-how stays with the people who made it. Other patterns can serve that goal too, and we do not claim any one of them is right for you.
We do not choose a structure for anyone, and we do not give legal, tax or investment advice. The right structure depends on the country, the business and the people. Take these questions to your own advisers.
Investing In Africans makes introductions between people. It does not offer, arrange or advise on investments or financial products and is not licensed by the AFM. Any investment decision is yours, made with your own advisers, and investments can lose value.