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Comment by jasode

The co-op structure is interesting but it's ultimately constrained by the members'/employees' financial resources to contribute capital. That's why co-ops are always modest businesses like grocery stores, or a co-op of cleaning people, or in this article's case, a co-op of IT techs.

If you want to start a capital-intensive business like Google Inc or SpaceX, you have to use the typical corporate structure because you need the $X million in investments from angels, VCs, and the stock market.

The typical employees don't have a million dollars in their bank accounts to pool together and launch a Google-sized business as a co-op. The enormous costs for rack servers and data centers to scale out would outpace the employees' tiny cash contributions.

parent jasode 11 years ago

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