FundersClub: have you thought about including profit-sharing (instead of a payoff at "liquidity", which might never happen for a profitable lifestyle or mid-growth business that still manages to kick out profits for 20 years) as a mechanism for returning funds to investors on a more immediate basis? If there's transparency in compensation, you can actually make this very fair to investors, and more fair to employees than the current VC-istan model. It would, even more importantly, provide a template for financing of mid-growth businesses (a "fleet" of thousands of so-called "lifestyle businesses" focused on cultural health and ~20%/year growth instead of VC-istan's 150%) that are currently underfunded.
FundersClub: have you thought about including profit-sharing (instead of a payoff at "liquidity", which might never happen for a profitable lifestyle or mid-growth business that still manages to kick out profits for 20 years) as a mechanism for returning funds to investors on a more immediate basis? If there's transparency in compensation, you can actually make this very fair to investors, and more fair to employees than the current VC-istan model. It would, even more importantly, provide a template for financing of mid-growth businesses (a "fleet" of thousands of so-called "lifestyle businesses" focused on cultural health and ~20%/year growth instead of VC-istan's 150%) that are currently underfunded.
Here's an exposition of how that would be structured to make it fair to everyone: http://michaelochurch.wordpress.com/2013/03/26/gervais-macle...