Normative and speculative, not descriptive. For descriptive stuff, see Financial markets.
On unorthodox ways to get capital-intensive risking things done. Weird stakeholder models. Worker owned firms. Der Mittelstand. Capitalism’s end game. Mechanism design, Mechanism design.
Other financey things
We’ve worked with the team at Cooley to create an investment instrument that has elements of both debt and equity. Debt in that we will not be purchasing equity initially, but, unlike debt, there is no maturity date, no collateralization of assets and no recourse if it’s never paid back. The equity element will only become a factor if the participating company chooses to raise a round of financing or sell out to an acquiring company. We don’t have a clever acronym or name for this instrument yet, but I’m sure we’ll come up with something great.
This instrument gives us a lot more flexibility to work with different types of companies than the Delaware C-Corps most commonly funded by VCs. It also facilitates the two elements of the indie.vc terms that were most important to us and to founders: cash distributions and contingent equity conversion.
Lend for Good:
A platform through which the crowd can lend money to growing businesses that are delivering impact.[…]
Impact SMEs post deals for the capital they need to the crowd.
Lenders in the crowd choose the deals they support because of the business, the terms and the impact.
Borrowers chase their business and impact goals, and repay their lenders an agreed interest rate after an agreed time frame.
- Stross, C. (2014). Neptune’s brood: a space opera.
Immortal robots battle over interstellar investment capital.