A £1.5 million deal between Baxi Partnership Ltd and Poptel, the UK’s leading co-operative Internet services and solutions provider is set to revolutionise the way employee-owned organisations secure funding in the future.
The deal ensures that Poptel employees remain the main shareholders, with 51 per cent of stock, at the same time as securing funding for growth of the business.
David Erdal, a director of Baxi Partnership Ltd, which specialises in investing in majority employee owned companies, was optimistic the deal would pave the way for similar agreements in the future.
He commented, “The deal underlines Baxi’s faith in employee-owned businesses. We are confident of seeing a healthy return on our investment over time and glad to have been instrumental in keeping Poptel in the control of its employees.”
He added that research had shown that workforce productivity and commitment is much higher where staff have a stake in companies.
Shaun Fensom, Poptel’s founder and chair, added, “This is a milestone for co-operatives and other employee-owned businesses. For the first time we have a fund that can act with the speed and flexibility of venture capital and yet fully supports employee ownership.”