The Co-Op Movement Is Taking on Big Tech (opens in new tab)

There are multiple different types of coops. Here’s a good breakdown: https://ncdc.unl.edu/typescooperatives.shtml

You’re correct that financing is harder compared to VC funding, and likely involves personal or bank loans.

As for what a co-op is the short gist is that it's an employee owned business, usually shared between employees. Most of it's history here in the states is associated with hippies and small town municipalities but in other places there are even universities that specialize in it like Mondragon University in Spain.

You've hit on the largest challenge of starting a co-op, that is getting the initial investment as it is quite difficult to get those loans and there are not as many investors pursuing that route.

This article from a couple of weeks ago hits on how it's actually getting harder for them. https://www.propublica.org/article/the-government-is-here-to...

Traditionally, raising capital from the membership. Careful that there are a lot of different forms of cooperative, though.