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Presumably because they believe in the model. The upside comes from the cooperative ownership. Clearly this isn't intended to attract VCs, but to encourage fina
by tstrimple 4y ago
Presumably because they believe in the model. The upside comes from the cooperative ownership. Clearly this isn't intended to attract VCs, but to encourage financial investments from existing employee owners.
- deleted 4y ago[deleted]
- gruez 4y agoOkay, but why would I want to buy $10k worth of junk bonds from the scrappy startup where I work at? A normal person who wants better returns than t-bills or investment grade bonds buys equities, not junk bonds. Sure, that loan might help the startup to succeed in its mission and therefore net me more profit, but it suffers from the free rider problem. Everyone in the business benefits if it succeeds, but if it fails you experience 100% of the losses. Why would anyone want to invest more than the minimum/average amount?