Post by account_disabled on Mar 4, 2024 23:17:11 GMT -5
Another company qualified as a B-corp and incorporated as a company for profit (social and financial) purposes is preparing to make a public offering of securities to increase its capital and begin trading on the New York Stock Exchange. Will it go better? I. All the birds Allbirds is a company that produces footwear based on merino wool. It was founded with the purpose of producing it with less environmental impact than the traditional one . It was founded in New Zealand by a former soccer player and an environmentalist. The company has a humble image, but with mystique. The shoes do not have a logo, but if you know the brand by seeing them, you know that they are shoes from that brand, not because you see a logo. A couple of years ago the undersigned bought two pairs, not because he knew of their origins, but out of curiosity, shoes, not sandals, made of wool? and because they seemed very comfortable and I can attest that in fact they are and surprisingly, because they are made of fabric, they are durable.
The marketing of footwear is done directly to the consumer from the company, via the Internet, without intermediaries, although they have begun to open their own stores. The company obtained most of its initial Ecuador Mobile Number List capital in the private markets (angel investors and venture capital), but given the success achieved, it needs other sources of capital and intends to obtain it through a public offering. In the private equity contributions, investors knew that the company was incorporated as a for-profit company and certified as a B-corp and that it intends to remain so after the public offering. In the last capital increase the company was valued at US$ 1.7 billion. Its motto is “creating better things better.” The company highlights that the wool in its shoes consumes 60% less energy than synthetic materials. It is not so much the production process as the materials used. And although they do not highlight it, it is also worth noting that it contributes much less to greenhouse gas emissions than leather, especially cow leather, which is one of the main contributors to methane emissions, which is much more powerful.
On the other hand, the sheep are still alive after giving the wool. Wool is renewable. Investors knew and know about the dual profit objectives. But the key question, as we asked in previous cases such as Etsy and later with Danone, is whether the stock market will resist and have the patience to continue investing in a company with those characteristics. Lessons from other birds Let us remember the case of Etsy (internet commerce, mostly of products from artisans and smaller companies), a company certified as a B-corp, listed on the stock exchange and which was subject to attack by minority investors who wanted a change in strategy. , to better exploit the business, with a more aggressive search for financial benefits and a reduction in social benefits to its employees. These investors were successful and transformed the company's strategy, which was no longer certified as a B-corp. Its comprehensive model helps strengthen values and skills to guarantee children's rights, academic performance, and the development of community leadership that promotes citizen participation, seed projects, and public advocacy and advocacy.