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Perhaps. But the level of risk is so high that the bond would have to pay a very high coupon. But by perhaps bundling startups together the way they do for mo
by rmah 16y ago
Perhaps. But the level of risk is so high that the bond would have to pay a very high coupon. But by perhaps bundling startups together the way they do for mortgages it could lower the risk level. We could have SBS's or Startup Backed Securities. Har.
- DaniFong 16y agoThis is not a bad idea. It might be a great one. Do you know anything about the logistics of getting something like this legally worked out? Presumably, there are some businesses who'd be okay with that very high coupon -- as the business model improves itself it could come down. It's a lot less risky that credit card and other personal debt, but it handles a niche that equity investments mostly can't touch. That's possibly trillions of dollars in an underserved market.