Great article, Alex. I am also excited to see the maturation of the SAFG framework for early investment in these stakeholder businesses and communities - incentivizes virtuous behavior from the start?
you mean SAFE? To get long term oriented investors on board to back founders pre network launch a legal entity is required. Ownership stakes in these entities cannot be made available for the public due to securities regulations combined with the demand from founders to work with sophisticated VC who understand their business and support building it. The good thing is that the timeframe from 'founding' to 'liquid asset' might be ca. 3 years vs. 12 years in conventional PE where all the upside is privatised before the assets are dumped on retail.
Great article, Alex. I am also excited to see the maturation of the SAFG framework for early investment in these stakeholder businesses and communities - incentivizes virtuous behavior from the start?
you mean SAFE? To get long term oriented investors on board to back founders pre network launch a legal entity is required. Ownership stakes in these entities cannot be made available for the public due to securities regulations combined with the demand from founders to work with sophisticated VC who understand their business and support building it. The good thing is that the timeframe from 'founding' to 'liquid asset' might be ca. 3 years vs. 12 years in conventional PE where all the upside is privatised before the assets are dumped on retail.
No I mean the SAFG: https://link.medium.com/9p1XRnXEW8 - I am however not familiar with how securities law will effect this model 🤷🏼♂️