Financial Capital - Revision history

Marcin: /* Typical Numbers for a Venture Capital Firm */

2020-12-24T01:07:51Z

Typical Numbers for a Venture Capital Firm

← Older revision		Revision as of 01:07, 24 December 2020
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	Financial capital, as opposed to real capital (land, machines, physical goods) is ethereal form of capital encoded as digits in electronic accounting systems - also known as money. This money is distributed and allocated according to centuries-old principles of resource allocation, typically resulting in large accumulation of wealth and a [[Gini Coefficient]] above 0.5. From Open Source Ecology's perspective, the opposite of Financial Capital can be defined. In particular, we are interested in startup funding. For startup funding, instead of financial capital, OSE prefers distributed capital in the form of [[Open Source Social Capital]]. Although ''social capital'' appears to refer to services, this capital produces the hardware capital (goods and materials) necessary for enterprise startup.		Financial capital, as opposed to real capital (land, machines, physical goods) is ethereal form of capital encoded as digits in electronic accounting systems - also known as money. This money is distributed and allocated according to centuries-old principles of resource allocation, typically resulting in large accumulation of wealth and a [[Gini Coefficient]] above 0.5. From Open Source Ecology's perspective, the opposite of Financial Capital can be defined. In particular, we are interested in startup funding. For startup funding, instead of financial capital, OSE prefers distributed capital in the form of [[Open Source Social Capital]]. Although ''social capital'' appears to refer to services, this capital produces the hardware capital (goods and materials) necessary for enterprise startup.

	=~~Typical Numbers for a~~ Venture ~~Capital Firm~~=		=Cost of Capital - Venture vs Revenue Financing=

	*A typical company will give up about 50% ownership, and successful companies bring in about 15x their initial investment of about $10M [https://timiacapital.com/blog/much-venture-capital-really-cost/]. This is not good capital efficiency.		*A typical company will give up about 50% ownership, and successful companies bring in about 15x their initial investment of about $10M [https://timiacapital.com/blog/much-venture-capital-really-cost/]. This is not good capital efficiency.
	*Typical funding rounds - Seed, Series A, B, C - [https://www.investopedia.com/articles/personal-finance/102015/series-b-c-funding-what-it-all-means-and-how-it-works.asp]		*Typical funding rounds - Seed, Series A, B, C - [https://www.investopedia.com/articles/personal-finance/102015/series-b-c-funding-what-it-all-means-and-how-it-works.asp]
			*Revenue financing is where an investor takes a cut of your revenue, until a multiple of their invenstment is reached (the cap), but doesn't end up owning your business.
			*For cost of capital - revenue financing [https://en.wikipedia.org/wiki/Revenue-based_financing] is more expensive than a commercial bank loan but less expensive than venture capital.

Marcin at 01:02, 24 December 2020

2020-12-24T01:02:00Z

← Older revision		Revision as of 01:02, 24 December 2020
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	Financial capital, as opposed to real capital (land, machines, physical goods) is ethereal form of capital encoded as digits in electronic accounting systems - also known as money. This money is distributed and allocated according to centuries-old principles of resource allocation, typically resulting in large accumulation of wealth and a [[Gini Coefficient]] above 0.5. From Open Source Ecology's perspective, the opposite of Financial Capital can be defined. In particular, we are interested in startup funding. For startup funding, instead of financial capital, OSE prefers distributed capital in the form of [[Open Source Social Capital]]. Although ''social capital'' appears to refer to services, this capital produces the hardware capital (goods and materials) necessary for enterprise startup.		Financial capital, as opposed to real capital (land, machines, physical goods) is ethereal form of capital encoded as digits in electronic accounting systems - also known as money. This money is distributed and allocated according to centuries-old principles of resource allocation, typically resulting in large accumulation of wealth and a [[Gini Coefficient]] above 0.5. From Open Source Ecology's perspective, the opposite of Financial Capital can be defined. In particular, we are interested in startup funding. For startup funding, instead of financial capital, OSE prefers distributed capital in the form of [[Open Source Social Capital]]. Although ''social capital'' appears to refer to services, this capital produces the hardware capital (goods and materials) necessary for enterprise startup.

			=Typical Numbers for a Venture Capital Firm=

			*A typical company will give up about 50% ownership, and successful companies bring in about 15x their initial investment of about $10M [https://timiacapital.com/blog/much-venture-capital-really-cost/]. This is not good capital efficiency.
			*Typical funding rounds - Seed, Series A, B, C - [https://www.investopedia.com/articles/personal-finance/102015/series-b-c-funding-what-it-all-means-and-how-it-works.asp]

Marcin at 00:18, 24 December 2020

2020-12-24T00:18:20Z

← Older revision		Revision as of 00:18, 24 December 2020
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	Financial capital, as opposed to real capital (land, machines, physical goods) is ethereal form of capital encoded as digits in electronic accounting systems - also known as money. This money is distributed and allocated according to centuries-old principles of resource allocation, typically resulting in large accumulation of wealth and a [[Gini Coefficient]] above 0.5. From Open Source Ecology's perspective, the opposite of Financial Capital can be defined. In particular, we are interested in startup funding. For startup funding, instead of financial capital, OSE prefers distributed capital in the form of [[Open Source Social Capital]]		Financial capital, as opposed to real capital (land, machines, physical goods) is ethereal form of capital encoded as digits in electronic accounting systems - also known as money. This money is distributed and allocated according to centuries-old principles of resource allocation, typically resulting in large accumulation of wealth and a [[Gini Coefficient]] above 0.5. From Open Source Ecology's perspective, the opposite of Financial Capital can be defined. In particular, we are interested in startup funding. For startup funding, instead of financial capital, OSE prefers distributed capital in the form of [[Open Source Social Capital]]. Although ''social capital'' appears to refer to services, this capital produces the hardware capital (goods and materials) necessary for enterprise startup.

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2020-12-24T00:17:19Z

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Financial capital, as opposed to real capital (land, machines, physical goods) is ethereal form of capital encoded as digits in electronic accounting systems - also known as money. This money is distributed and allocated according to centuries-old principles of resource allocation, typically resulting in large accumulation of wealth and a [[Gini Coefficient]] above 0.5. From Open Source Ecology's perspective, the opposite of Financial Capital can be defined. In particular, we are interested in startup funding. For startup funding, instead of financial capital, OSE prefers distributed capital in the form of [[Open Source Social Capital]]