The book discusses philosophy, economics and behavioral finance in a manner that engages readers who are expert in capital structures or a novice. He mix insight with humor. With every page, he aspire to cause a reader to utter an “Aha!” or a “Ha!”
Karl describe how a critical mass of people can usher in better deal structures for companies that raise venture capital. The key is the Fairshare Model, a deal structure that provide price protection for IPO investors. It provides employees with stock that votes but cannot trade; it becomes tradable based on performance milestones which could include measures of social good.
The book opens with a description of the Fairshare Model and the problem with a conventional capital structure. Crowdfunding is discussed and the type of companies that may adopt the Fairshare Model are profiled. There are chapters that explore the macro-economic context; economic growth, income inequality and the potential for collaborative stakeholders to create competitive advantage.
Objections that many have about average investor participation in venture-stage companies are examined—risk of fraud, overvaluation and failure.
Chapters on valuation cover concepts, calculation, evaluation and call on the U.S. Securities and Exchange Commission to require valuation disclosure in every offering document. The book also presents the most remarkable aspect of the Fairshare Model---it provides venture-stage companies a reason to offer public investors a low valuation.
The Fairshare Model will be published in about five months after 250 people pre-order a copy from Inkshares, a new style publisher that decides what projects to back based on reader support. With the USD $5 credit that Inkshares issues to new customers, an e-book will set you back less than $10---an e-book + signed print copy combo, $15. If it isn’t published or you cancel your order before it is shipped, your money will be refunded by Inkshares.
Imagine, for a modest, risk-free amount, you can help launch a broad discussion about how to re-imagine capitalism!
If you like the Fairshare Model, Karl would very much appreciate your support in the form of a pre-order. Again, you can do it here https://www.inkshares.com/projects/the-fairshare-model
I highly suggest the book!