a lot of the benefits of “impact markets” can be realized just by encouraging charitable founders to create C-Corps (or PBCs), which can take “investment” from nonprofit funders like AISTOF, or “revenue” from nonprofit buyers scoping out a prize or purchase commitment, like cG.
This seems like one of the key points, but I don’t completely get what you’re saying and the writing here is highly dense.
The hope of impact markets is that we can come up with a clever accounting system for 501c3 nonprofits, which allows them to fundraise for equity (like a standard C-Corp), and then later distribute its prizes/retro funding among its early funders (like a dividend).
What if, instead of coming up with a clever accounting system, we just asked impactful orgs to incorporate as a C-Corp in the first place? And then, the impact market’s prospective funders (usually small funders, like AI Safety Tactical Opportunities Fund) just literally bought equity in the C-Corp. And then, the impact market’s retro funders (large funders like cG) just paid out for good work as a prize to the C-Corp. (Or, invest at a higher valuation for a “Series B” with a tender offer, for earlier investors to cash out.)
Then we would get all the benefits of an impact market, but not need exotic new instruments to implement them.
Could you expand on the argument for:
This seems like one of the key points, but I don’t completely get what you’re saying and the writing here is highly dense.
Thanks for flagging. Let me try again:
The hope of impact markets is that we can come up with a clever accounting system for 501c3 nonprofits, which allows them to fundraise for equity (like a standard C-Corp), and then later distribute its prizes/retro funding among its early funders (like a dividend).
What if, instead of coming up with a clever accounting system, we just asked impactful orgs to incorporate as a C-Corp in the first place? And then, the impact market’s prospective funders (usually small funders, like AI Safety Tactical Opportunities Fund) just literally bought equity in the C-Corp. And then, the impact market’s retro funders (large funders like cG) just paid out for good work as a prize to the C-Corp. (Or, invest at a higher valuation for a “Series B” with a tender offer, for earlier investors to cash out.)
Then we would get all the benefits of an impact market, but not need exotic new instruments to implement them.