Most start-ups don’t get anywhere close to the stage where they’re paying people out of revenue (which is reason for that 3% number), so volunteering to work for a possible future payout is incredibly high risk even if the potential payout is much higher than the market rate. Consequently, as an entrepreneur I’d have to be very wary that anyone agreeing to work on that basis might just give up and walk away leaving me with the problem that my business plan’s timeline is screwed. They couldn’t be contractually bound to do the work without me being contractually bound to pay them in time even if the project fails unless they’ll sign something very dubious.
In essence it sounds like you’re trying to turn “sweat equity” into a job. It’s an admirable idea, and it’d be great if you can do it, but it’s going to be a huge job selling the idea of working for possible future wages to people. One I think you might find is insurmountable. In fact, I imagine most start-ups would find it easier to find people willing to work for free. C From: [email protected] [mailto:[email protected]] Sent: 15 June 2010 12:38 To: [email protected] Subject: [mySociety:public] Views wanted - on our sustainable solution enterprise and employment creation solution Hi Everyone, I am interested in getting your views on our sustainable solution to enterprise and employment creation which facilitates the following: (1) The "funding" of business start up with peoples spare time and resources - currently less than 3% of even investor ready, high growth venture propositions succeed in raising finance. (2) Enabling individuals to help create their own well paid jobs by help a start up get to market by working on an initial premium priced, but paid out of revenue basis. (3) Reducing or eliminating the ongoing cost of employment and enterprise support services by getting them paid for on the same premium priced, deferred payment basis. (4) Minimising lost tax revenues due to informal collaboration and bartering - our platform minimises repayment risk by enabling revenue distribution by a bank or payment processor. (5) An increase in the number of later stage investable ventures boosting the recovery. Details on the solution can be found at www.piefinance.com Your thoughts on it's merit and drawbacks would be much appreciated, together with any thoughts on how it could be rolled out for maximum public benefit. Kind regards Senake Atureliya CEO Pie Finance Ltd & Pie Finance (Not for Profit) Ltd, London [email protected]
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