The Living Thing / Notebooks :

Financing utopia

Hedonistic mechanism design

Usefulness: 🔧
Novelty: 💡
Uncertainty: 🤪 🤪 🤪
Incompleteness: 🚧 🚧 🚧

On unorthodox ways to get capital-intensive risking things done. Weird stakeholder models. Worker owned firms. Der Mittelstand. Capitalism’s end game. Mechanism design, Should probably include Prediction market and/or mechanism design angles.

For descriptive stuff, see Finance, descriptives. For actual strategies in already-existing markets, portfolio theory.

Worker-owned firms and other profit share models

Other financey things

Indie VC:

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.

equitise: Equity crowdfunding for private companies in Australia/NZ. I kind of like that this exists but also… why would you rationally take on the higher risk of non-listed firms? There are other operators locally in IPOs at least.

Lend for Good:

A platform through which the crowd can lend money to growing businesses that are delivering impact.[…]

Stross, C. (2014). Neptune’s brood: a space opera.

Immortal robots battle over interstellar investment capital.

Refs

Coad, Alex, and Martin Binder. 2014. “Causal Linkages Between Work and Life Satisfaction and Their Determinants in a Structural VAR Approach.” Economics Working Paper Archive wp_809. Levy Economics Institute. https://ideas.repec.org/p/lev/wrkpap/wp_809.html.

Dyck, Alexander, and Luigi Zingales. 2002. “Private Benefits of Control: An International Comparison.” Working Paper 8711. National Bureau of Economic Research. http://www.nber.org/papers/w8711.

Freeman, Richard B., Joseph R. Blasi, and Douglas L. Kruse. 2010. “Introduction to "Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-Based Stock Options".” NBER, April, 1–37. http://www.nber.org/chapters/c8085.

Jeners, Nils, and Wolfgang Prinz. 2014. “Metrics for Cooperative Systems.” In Proceedings of the 18th International Conference on Supporting Group Work, 91–99. ACM. http://dl.acm.org/citation.cfm?id=2660407.

Kruse, Douglas. 2002. “Research Evidence on Prevalence and Effects of Employee Ownership.” Journal of Employee Ownership Law and Finance 14 (4): 65–90. http://esop.com/pdf/esopHistoryAndResearch/researchEvidence.pdf.

Kruse, Douglas L., Richard B. Freeman, and Joseph R. Blasi. 2010. Shared Capitalism at Work: Employee Ownership, Profit and Gain Sharing, and Broad-Based Stock Options. University of Chicago Press. https://doi.org/10.7208/chicago/9780226056968.001.0001.

Logue, John, and Jacqueline Yates. 2005. “Productivity in Cooperatives and Work-Owned Enterprises: Ownership and Participation Make a Difference.” Geneva: International Labor Office. http://community-wealth.org/content/productivity-cooperatives-and-work-owned-enterprises-ownership-and-participation-make.

Morck, Randall, and Bernard Yeung. 2010. “Agency Problems and the Fate of Capitalism.” Working Paper 16490. National Bureau of Economic Research. http://www.nber.org/papers/w16490.

Palladino, Lenore. 2019. “RIP Shareholder Primacy.” Text. Boston Review. August 21, 2019. http://bostonreview.net/class-inequality/lenore-palladino-rip-shareholder-primacy.

Rajan, Raghuram G., and Luigi Zingales. 2000. “The Governance of the New Enterprise.” Working Paper 7958. National Bureau of Economic Research. http://www.nber.org/papers/w7958.

———. 1998. “Power in a Theory of the Firm.” The Quarterly Journal of Economics 113 (2): 387–432. https://doi.org/10.1162/003355398555630.

Shleifer, Andrei, and Robert W. Vishny. 1997. “A Survey of Corporate Governance.” The Journal of Finance 52 (2): 737–83. https://doi.org/10.2307/2329497.

Zingales, Luigi. 2000. “In Search of New Foundations.” The Journal of Finance 55 (4): 1623–53. https://doi.org/10.1111/0022-1082.00262.