Giving capital to promising people “too early” in their career is a great idea with much further to go, and the power law provides an interesting way to finance it.
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YC is a great example. You can imagine taking that further—giving $25k to the smartest and most determined 100,000 people you can find each year to work on whatever they want, in exchange for the right to invest in their next startup. A country could make the economics work.
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It's hard to define the "right to invest in their next startup" part without crossing into exploitation. E.g. what if their cofounders don't want you to invest? From their POV, the people you've funded are carriers of an obligation that infects the whole company.
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haha, good point.
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Isn’t this basically an ISA?
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No. ISAs (a) only apply to individuals and (b) can, and should, be capped.
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exactly, it has its draw backs that
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What is the alternative? Long-term innovation benefits seem hard to turn down https://twitter.com/chrishlad/status/1289611778444279812?s=21 …https://twitter.com/chrishlad/status/1289611778444279812 …
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This is why you’re great Paul - your mind immediately goes to supporting and protecting the the rights of founders even though you’re on the other side of the table. It’s why YC has been so successful in my opinion.
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“Right” can be softened to almost nothing and still give you almost all of the benefit with the goodwill that free money provides. “Here is some money. And we would love to invest in your next startup” goes a long way.
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Sounds like a more scalable version of the Thiel Fellowship. I think Peter runs into the same issue you mention, Paul. I've heard numerous examples of Peter not being chosen as the lead for his fellows.
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Probably we need a method to invest in an individual and even though they work in a team later on, the returns on investment comes from their portion of the proceedings.
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Still very hard to quantify though
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