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| On "getting that compensation", are there other ways to financially bootstrap a company and give "future payoff" to investors and early employees without requ
by sdrinf 4y ago
| On "getting that compensation", are there other ways to financially bootstrap a company and give "future payoff" to investors and early employees without requiring IPO/acquisition?
In virtually all existing use cases, I'm strongly against cryptocurrencies, buuuut token issuing and the related Ponzi scheme has been the single biggest new thing they brought to the table which _does_, actually solves this (minus the questionable legality, the Ponzi, and all the current issues the crypto market is having). IE: issue utility-coin for founders & first employees, issue utility coin for public, increase overall utility (and thereby price) of coin, cash out of coin via public. Some coins even carry voting power, which makes the end-consumer part of the governing process. Connecting value-holding with utility _is fairly novel_, haven't seen it being tried in normal corporations before, and might be interesting, if it works.
The other config would be dividend-paying corps; however they went out of fashion on account of growth-above-all-strat playing corps being able to fundraise based on the _biggest hopes and aspirations_ any of the potential investors can dream up; which means, a competitive market have selected for growth-above-all against dividend-paying.
| What do the balance sheets and end of year accounts look like for a non-profit? What happens if they generate surplus profit? Can the CEO and director simply pocket it too avoid "making profit"?
Nonprofits _totally can make a profit_; buuut they can't distribute it to directors, and can't issue dividends. They could have increased salaries; however the governing check&balance on the organization, is that they must have 3 independent people on the board, who checks decisions against the organization's "non-profit mission"; and having high salaries for execs can't really fit that.