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Re: Generalizing Peer Production into the Physical World

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  • cjenscook
    Hi Scott Although I m based in Linlithgow, Scotland (birthplace of Mary, Queen of Scots) I m not Scottish myself, just a mongrel. ... family, angel, or venture
    Message 1 of 28 , Nov 11, 2007
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      Hi Scott

      Although I'm based in Linlithgow, Scotland (birthplace of Mary, Queen
      of Scots) I'm not Scottish myself, just a mongrel.

      --- In decentralization@yahoogroups.com, "Scott Feamster" <sf@...>
      wrote:
      >
      > What Chris describes is equity capital that we call friends and
      family, angel, or venture capital investment in the U.S. Equity will
      continue to provide the costliest investment dollars; debt will
      continue to provide the cheapest investment dollars.
      >

      The "who" is immaterial.

      It's the "how" of this new form of Equity that is entirely novel
      (although, as I said, Canadian "Income Trusts" come close).

      This is not "Equity" as in a Limited Company, and is a lot less
      risky, albeit the returns MAY be less than those from Equity in a
      Corporation, so are the risks.

      Investors receive a proportional share of the revenues from the
      property financed (whether Real property or IP) BEFORE the
      management gets its hands on them.

      If there are any revenues, of course.

      In other words, in this model Labour works WITH Capital not FOR it,
      and you don't get the "Principal/Agent" problem which
      all "Corporations" have, and which is why there is a huge body of
      Company law, and that famous oxymoron, "Corporate Social
      Responsibility".

      This "Open" form of Capital is an entirely new and simple
      (unlike "mezzanine", convertibles, warrants etc etc) middle ground
      between conventional "Debt" and "Equity", and in my experience comes
      in a lot less expensive than conventional "Equity", but more
      expensive than "Debt" wwith potential of a much greater return.

      There cannot be a default, because it is not a "cost" or
      an "overhead", but rather a "pre-distribution".

      This is something entirely new, and it does take a bit of getting
      your head around, for sure.

      Best Regards

      Chris
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