Tera was incorporated as a Benefit Corporation or B Corp.
What is a Benefit Corporation?
Benefit corporations are a new legal tool to create a solid foundation for long term mission alignment and value creation. It protects mission through capital raises and leadership changes, creates more flexibility when evaluating potential sale and liquidity options, and prepares businesses to lead a mission-driven life post-IPO.
Becoming a benefit corporation has advantages for every stakeholder in the business, from consumers and talent to shareholders and directors.
• Expanded Stockholder Rights
Investing in a benefit corporation gives impact investors the assurance they need that they will be able to hold a company accountable to its mission in the future. This could aid companies in attracting impact investment capital.
• A Reputation For Leadership
Your business will join other high profile, highly respected companies as a benefit corporation (e.g. Patagonia in California), and be at the forefront of a growing movement.
• An Advantage in Attracting Talent
"Millennials will grow to 75% of the workforce by 2025, 77% say their “company’s purpose was part of the reason they chose to work there.” Benefit corporation status gives prospective employees confidence that a company is legally committed to their mission.-Deloitte Millennial Survey
• Increased Access to Private Investment Capital
Benefit corporation status can make your company more attractive to investors as a company with increased legal protection, accountability and transparency around its mission. Benefit corporations can also speed up investor due diligence since they produce an annual benefit report, which describes their qualitative activities aimed at producing general public benefit.
• Increased Attractiveness to Retail Investors and Mission Protection as a Publicly Traded Company
Benefit corps create an attractive investment opportunity for the same conscious consumers that have fueled organics, fair trade, and “buy local” movements, while enjoying a form of inoculation from the short-termism that plagues public equity markets.
• Demonstration Effect
Benefit corps show investors and entrepreneurs from every industry what the future Fortune 500 looks and acts like.