GoX141024 karma2020-01-12 00:27:36 UTC
Okay, so my understanding (which is likely wrong) is that this is basically a socially conscious crowd-sourced investment. Those exist in other verticals. Conceptually, it kinda works. But I can already invest in a solar ETF or an equity. And anyone can do that. And those are much lower risk than this pseudo-angel investment. So in order for it to work, there has to exist the possibility of a much higher return than those competing investment vehicles.
Can you model the returns for us, assuming a $1,000 investment?
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GoX14270 karma2020-01-12 05:41:48 UTC
Thanks for the response! From an unbiased perspective, as someone with a similar background to you guys, I think this answer needs some work. I can explain how stocks or ETFs work to people, using a $1,000 investment as an example, without risking any sort of thorny legalese. A model is not a promise. But it's quintessentially important that the model can be easily described, and some ballpark numbers can be used.
Is this like a VC model, where I should expect a lot of failure with occasional giant returns?
Or is this more like an equity, where I should expect more consistent, smaller long term gains?
Reading through a few of your answers, it's troubling that the answer to those two questions isn't obvious.
I just think it needs a lot of buttoning up, especially since you're already fundraising. But I respect the concept at least at its core!
GoX149 karma2020-01-12 00:33:41 UTC
IMO, the only way it works is for investors to approach it with the attitude people have on Kickstarter now. "I'm probably going to get fucked but it's cool and I can spare the $100"
Pardon the cynicism.
There's no question that this carries at least 100x more risk than an equity or ETF governed by the SEC. These investments will be black holes.
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