I can’t speak for Zach, but that’s not the meaning of “surplus” I had in mind above.
Suppose Funder’s bar is 10 utils per dollar. In standard operation, it will buy some work at 10 util/$, but will also have the chance to buy at 11 util/$, 12 util/$, and maybe even a little at 20 util/$. By surplus, I meant the extra 1 . . .2 . . . 10 util/$ that were above the funding bar. Because Funder was able to acquire utils on the cheap in these transactions, it can afford to acquire more utils within its budget.
If Funder bought impact certificates on a 10 util/$ basis, it wouldn’t have any surplus of this type. The fix may be that Funder should buy at its average weighted util/$ basis, which is higher than its funding bar. Of course, this requires the funder to figure out its average weighted util/$ in the relevant cause area, which might or might not be easy.
I can’t speak for Zach, but that’s not the meaning of “surplus” I had in mind above.
Suppose Funder’s bar is 10 utils per dollar. In standard operation, it will buy some work at 10 util/$, but will also have the chance to buy at 11 util/$, 12 util/$, and maybe even a little at 20 util/$. By surplus, I meant the extra 1 . . .2 . . . 10 util/$ that were above the funding bar. Because Funder was able to acquire utils on the cheap in these transactions, it can afford to acquire more utils within its budget.
If Funder bought impact certificates on a 10 util/$ basis, it wouldn’t have any surplus of this type. The fix may be that Funder should buy at its average weighted util/$ basis, which is higher than its funding bar. Of course, this requires the funder to figure out its average weighted util/$ in the relevant cause area, which might or might not be easy.