>Worker coops will work great for the successful products, but most are failures. Who pays for those?
The people who invested to start them. A co-op is just when the stakeholders get together to buy something (shares in the startup, in this case) instead of having a handful of not-so-informed and partially disinterested investors provide liquidity.
So in this example, are the laid-off workers investing money to the coop? Are they getting paid? Who contributes the money for the marketing budget, for example?
And if the people investing aren't the workers, how is it different than the VC model?
So this model only works if the laid-off employees can self-fund the new company, right? and they can afford to lose the invested capital if the startup fails?
