Bitcoin Forum
June 15, 2024, 09:21:58 PM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Trusted p2p venture capital investing protocol using BTC  (Read 577 times)
Captain Hennessy (OP)
Newbie
*
Offline Offline

Activity: 3
Merit: 0



View Profile
June 20, 2013, 07:50:22 PM
 #1

Hi, I'm a newbie.

Suppose I have a bitcoin to spend. I choose to anonymously give away 1 BTCcent each to 100 people with a bright/crazy business idea, trusting blindly they will one day repay all their profits if their idea takes off. However I don't want a non-monetary product at the end (a la kickstarter), I just want to have BTC returned to me.

I'm literally talking about just sending someone 0.01 BTC after perhaps a minimal background check (say, they have to be a bitcointalk member for at least 1 year to be eligible), trusting they will take the money to build something great.

How would I be sure they would repay me and not secretly keep the money?

One way to go about it:

1. Candidates' projects should only accept BTC as a means of payment
2. Candidates should give a BTC address when applying. This address will be their single means of payment and remain visible on the website of their project throughout its lifetime.
3. After a certain investment period, any net inflows into candidates' BTC address are considered profit and should be returned to the investors. For example, if an investor solely puts 0.01 BTC in a project generating 0.10 BTC, then all 0.10 BTC go to the sole investor.
4. Candidates should give weekly updates on how they used the money.
5. Any subversion of rules 1-3 (using different BTC addresses to withhold revenue, accepting other forms of payment) will result in candidate being placed on a ban list.
6. Not following rule 4 will not necessarily result in public shaming, only the candidate won't be eligible for any future funding again.
7. Projects not generating revenue is NOT a bad thing, this is the hallmark of capitalism: fail until you succeed.

Any feedback gladly welcome!

- Captain Hennessy
buyer
Newbie
*
Offline Offline

Activity: 56
Merit: 0


View Profile
June 20, 2013, 07:53:39 PM
 #2

first Nobody wants or needs your penny

Second just because it has a new name doesn't mean securities regulations do not apply.  What you are proposing is regulated.
Captain Hennessy (OP)
Newbie
*
Offline Offline

Activity: 3
Merit: 0



View Profile
June 20, 2013, 08:50:18 PM
 #3

first Nobody wants or needs your penny

Second just because it has a new name doesn't mean securities regulations do not apply.  What you are proposing is regulated.

OK...

1) how about I want to give 1 BTC each to 100 people?

2) Silk Road isn't regulated

Cheers!
legitnick
Hero Member
*****
Offline Offline

Activity: 532
Merit: 500



View Profile WWW
June 20, 2013, 08:53:01 PM
 #4

Why would we want a penny?

Stupid thread, move on.

5 BITCOIN RAFFLE GIVEAWAY
"I dont lift" - Lord Furrycoat
Captain Hennessy (OP)
Newbie
*
Offline Offline

Activity: 3
Merit: 0



View Profile
June 20, 2013, 08:57:57 PM
 #5

Why would we want a penny?

Stupid thread, move on.

Hi,

I'm not suggesting a penny per se. It could be 1000 BTC or just 1 satoshi. I just want to explore the idea of creating a lightweight venture capital system (i.e. seeding capital to many startups) using BTC.

Cheers - Captain Hennessy
legitnick
Hero Member
*****
Offline Offline

Activity: 532
Merit: 500



View Profile WWW
June 20, 2013, 09:07:02 PM
 #6

You will likely make more simply investing in Bitcoin.

5 BITCOIN RAFFLE GIVEAWAY
"I dont lift" - Lord Furrycoat
Korbman
Legendary
*
Offline Offline

Activity: 1064
Merit: 1001



View Profile
June 20, 2013, 09:09:46 PM
 #7

Suppose I have a bitcoin to spend. I choose to anonymously give away 1 BTCcent each to 100 people with a bright/crazy business idea, trusting blindly they will one day repay all their profits if their idea takes off. However I don't want a non-monetary product at the end (a la kickstarter), I just want to have BTC returned to me.

I'm literally talking about just sending someone 0.01 BTC after perhaps a minimal background check (say, they have to be a bitcointalk member for at least 1 year to be eligible), trusting they will take the money to build something great.

I support the idea itself, but unfortunately the quantity of funding you're talking about simply isn't enough for true venture capital backing. A venture capitalist, for example, would be more interested in backing, say, 30-40% of the cost to startup a company (with the owner taking on the remainder). If the company takes off and goes public (via IPO or other sale), the VC is able to make quite a bit of money and sells off their portion.

At BTC1.0 or BTC0.01 ..or even BTC10.. you're better off investing normally. A Bitcoin VC would probably look into seeding 100s (if not thousand+) of Bitcoins.

How would I be sure they would repay me and not secretly keep the money?

Establishing a contract between yourself and the individual / company is usually the best way, but certainly not guaranteed. Bitcoin is more or less the 'wild west' when it comes to this stuff.


Second just because it has a new name doesn't mean securities regulations do not apply.  What you are proposing is regulated.

In normal markets, yes, you'd be correct. But this is Bitcoin ..investing and trading in various securities is not regulated.

buyer
Newbie
*
Offline Offline

Activity: 56
Merit: 0


View Profile
June 20, 2013, 09:26:07 PM
 #8

...investing and trading in various securities is not regulated.

Actually this is my point, just becuase it's bitcoin doesn't mean the other laws don't apply. 
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!