Entrepreneurs offer their life’s future earnings for an investment
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Entrepreneurs offer their life’s future earnings for an investment
1–10 of 29 posts
Re: Entrepreneurs offer their life’s future earnings for an investment
#2This particular execution - a lump sum of $600k for a lifetime's earning percentage of a successful non-profit entrepreneur - seems absolutely insane to me, but I've wondered about a similar arrangement under more narrowly contrived circumstances: Invest in promising (18 and over!) students by paying off their school for percentage of their salary, rather than dumping huge loans on them that demonstrably reduce their opportunities.
Right now, the armed forces in America regularly engage in a similar practice by paying for school in return for a commitment, and maybe their agreements could provide a model for a more entrepreneurial version down the road: We'll invest in your education plus a start-up stipend, in return for a stake in you and your projects during college + x years after, with a clause that you can leave at any anytime and assume your debt with a high level of interest.
Re: Entrepreneurs offer their life’s future earnings for an investment
#3These types of schemes are not even worth discussing, they're horrible for investors, and if the first venture doesn't work then does the investor buy more of the person? So that their their initial investment isn't lost? At want point does the person having sold 80% of their future earnings just stop working because they don't see it as worthwhile.
Re: Entrepreneurs offer their life’s future earnings for an investment
#4I think the financial pressure of bootstrapping is such a powerful motivator that I dunno if giving an unproven entrepreneur 600k is such a good idea.
Re: Entrepreneurs offer their life’s future earnings for an investment
#5This particular execution - a lump sum of $600k for a lifetime's earning percentage of a successful non-profit entrepreneur - seems absolutely insane to me , but I've wondered about a similar arrangement under more narrowly contrived circumstances: Invest in promising (18 and over!) students by paying off their school for percentage of their salary, rather than dumping huge loans on them that demonstrably reduce thei…
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Re: Entrepreneurs offer their life’s future earnings for an investment
#6I feel sorry for the people trying to do this. They will be in debt forever. You only understand the downsides of debt once you make an effort to get out of it. These people will never be able to do that.
The graduate student is signing a part of her future income away in her 20s before she has even earned income.
Re: Entrepreneurs offer their life’s future earnings for an investment
#7I think the financial pressure of bootstrapping is such a powerful motivator that I dunno if giving an unproven entrepreneur 600k is such a good idea.
So to break even, she will have to make 10 mil$, not doing the math on opportunity cost, taxes, etc. Sounds dubious.
Re: Entrepreneurs offer their life’s future earnings for an investment
#8This particular execution - a lump sum of $600k for a lifetime's earning percentage of a successful non-profit entrepreneur - seems absolutely insane to me , but I've wondered about a similar arrangement under more narrowly contrived circumstances: Invest in promising (18 and over!) students by paying off their school for percentage of their salary, rather than dumping huge loans on them that demonstrably reduce thei…
You can leave at anytime by not working.
That's definitely another way :)
Re: Entrepreneurs offer their life’s future earnings for an investment
#9This particular execution - a lump sum of $600k for a lifetime's earning percentage of a successful non-profit entrepreneur - seems absolutely insane to me , but I've wondered about a similar arrangement under more narrowly contrived circumstances: Invest in promising (18 and over!) students by paying off their school for percentage of their salary, rather than dumping huge loans on them that demonstrably reduce thei…
Sounds kind of like the public school system (not including university) and taxes.
Re: Entrepreneurs offer their life’s future earnings for an investment
#10I still trying to figure out what agreement is. Is this the same as someone investing in a company for equity? Where lifetime is the time the company is in business (but without bankruptcy)? Or is it just a really bad non-fixed rate loan? I would not agree to this contract on either side though.