1. Introducing The Innovation Co-Operative (Thinc) the world’s
first small business innovation co-operative. It harnesses
equity crowd funding to commercialise Australia’s innovative
small businesses and accelerate their growth for success.
Thinc adapts Australia’s national and state Co-operative
Laws to enable any Australian to share in a portfolio of small,
privately-owned Australian businesses with proven potential
for substantial growth. It offers all type of investors the
chance to realise dividends and capital gains far greater
than are possible from publicly-listed shares.
A ‘lightbulb moment’ enabling crowd
equity funding in Australia.
Worldwide, people are investing directly online in small
businesses and innovative ideas with the disruptive potential
for rapid growth. The Innovation Co-op founders realised that
the co-op model that helped build Australia’s wealth since
the 1880s was the ideal investment vehicle for 21st century
crowd funders. Thinc has been established on this ‘crowd’
based business platform to provide the first legitimate, cost-
effective way for all Australians to access the potential inherent
in accelerating growth and innovation for small business with
proven product and market potential, by transforming them
into much bigger and more profitable enterprises.
Much more than just growth
for success.
Since 1850 Australian co-operatives have operated under
distinct regulations specifically designed to enable people
with common objectives to get together and develop a
collective business opportunity.
Co-operatives are owned and operated by their members
according to specific Model Rules, each designed around
the co-operative’s core purpose.
Thinc’s core purpose is to foster
growth and innovation for
small businesses to create a
better Australia.
While capital gain is a strong motive for all Thinc members,
this broader purpose reflects our shared ambition to
support a stronger small business culture in Australia, by
filling the funding gap that today drives so many of our best
and brightest entrepreneurs to look overseas for capital
and partnerships to enable further growth.
The co-operative model also offers much more than a
passive investment opportunity, by soliciting Members’
feedback as consumers, rewarding their loyalty to Thinc-
managed businesses and allowing investment in a portfolio
of small businesses, rather than having to ‘pick a winner’.
Three types of members.
There are 3 types of members that generate this growth:
Pioneers – owners or founders of high-potential Australian
businesses whose growth will be accelerated by the
Thinc transformation process, via expert management,
in return for Thinc’s growing share of their business equity.
Champions – Members who contribute capital to enable
small business acceleration and support Pioneer growth as
consumers and advocates
Custodians – Members with the business
commercialisation know-how to assess, design, manage
and implement Pioneers’ growth for success.
A u s t r a l i a ’ s p e o p l e - p o w e r e d i n v e s t m e n t i n t h e i n n o v a t i o n r e v o l u t i o n .
T H E B O O M S T A R T S H E R E
participate to
commercialise
growth
innovative
businesses worth
growing
Profit-for-purpose
delivering high capital
growth and dividends

2. The benefits of membership.
Champions’ capital contributions enable expert Custodians to
accelerate Pioneer business growth, increase their profitability,
and ultimately boost their overall value. The aim is to drive an
average increase in business value of at least five times over
the life of Thinc.
As their value grows, so will Thinc’s share of equity in
Pioneer businesses, generating
annual dividends and building a
portfolio that will ultimately be sold
or converted into a corporate
vehicle — at which point, a second
Co-operative will be formed to begin
the process again.
Champions and Custodians will
each receive a share of Thinc’s
annual dividends, and ultimately
realise capital gains from the sale or
corporatisation of the portfolio.
Investment through
Capital Contribution
Units.
Champions who contribute
capital to enable acceleration of
Thinc investments receive Capital
Contribution Units (CCUs), entitling
them to a share of Thinc dividends
and sales proceeds. Thinc will
solicit capital contributions for up
to 5 years, or up to $100m in value, which will be used to fund
commercialisation services, cover costs and attract additional
funding for growth investments.
At least 50% of net annual dividend income from Thinc’s
shareholdings, and net capital gains from the sale of
Thinc equities, will be distributed as cash and tax credits
to Thinc Champion Members.
The amount of capital required to obtain a CCU will be
increased over time to reflect growth in the underlying
WHY CONTRIBUTE
CAPITAL TO THINC?
A QUICK SNAPSHOT:
Profit with a purpose
— high capital growth
& dividends
Shared economy,
Member discounts &
loyalty rewards
Develop a more
vital Australian small
business sector.
portfolio value. At launch the value of each CCU has been
set at $500. CCUs can be privately traded, but not through
Thinc, who may from time to time choose to buy back
some CCUs at their then nominated value. Capital gains
will be realised through the sale of Thinc’s shareholdings,
or ultimately by converting Thinc’s equity portfolio into a
corporate vehicle.
At this point CCU holders will receive returns equal to 50%
of the equity portfolio value divided by the number of CCUs
currently on issue.
More facts about
The Innovation
Co-operative.
Thinc was legally registered in
December of 2015. It has no
direct employees, and operates
entirely via service contracts with
its Founding Members and other
business service providers.
Thinc’s membership includes 15
Founding Member entities, many of
whom have worked for more than
3 years to establish the Co-op.
Collectively, the Founding Member
entities have invested over $1million
in cash and in-kind equity to make
Thinc a reality.
The Thinc Board is made up of
representatives of each Founding
Member, including an independent
Chair whose sole responsibility is to represent Champion
Members’ interests. All Members can vote for new board
positions at annual meetings.
To find out more about Thinc,
please email your name and a contact number to:
enquiries@theinnovationcoop.com.au