“Draft:Identity-centric investment model”的意思、由来-开放百科全书

According to research done by Paul A. Gompers and Anna Kovner, the entrepreneurs who succeeded in a prior ventures have a 30% chance of succeeding in their next venture. By contrast, first-time entrepreneurs has this chance at 18% and those who failed before reach 20% mark.^[2] One of the key conclusions of this research is echoed by general assumption of any traditional financial model - the past performance is a strong indicator of future success.

Figure 1 shows that investing in a personal success, unlike in enterprises, highly increases the chance of the eventual “breakthrough”. The achievements of a certain person is accumulated throughout lifetime through business endeavours, personal projects and outside investments.

Identity capitalization and HCBA

The economist Theodore Schultz invented the definition of human capital in the 1960s to reflect the value of human capacities. He stated that human capital is like any other type of capital, and it could be invested through education, training and enhanced benefits that lead to exponential improvement in the quality and level of production.

In other words, human capital is an economic value of a personal skill set. The concept of human capital recognizes that not all the labor is equal and that the quality of personal skills can be improved by investing in them; the education, the experience and the natural abilities all have their economic value.

Human Capital Backed Asset(HCBA) is a new type of financial instrument that is build around identity-centric investment model. It offers individuals an opportunity to use for their endeavours something that has been only available for corporations before - an equity financing. It offers investors a chance to fuel the overall lifetime growth of current and future business leaders and benefit from all of the achievements those leaders are able to reach.

Figure 2 shows the model of Identity capitalization and direct relationship between personal success and generated capital through the HCBA. The major difference from the enterprise model is that the capital is not bound to a particular project but for an person (entrepreneur).

The growth criteria for identity capitalization and HCBA coincide with the criteria in traditional capital models, where the growth of the project's capitalization correlates with the total market value of the project's assets, it’s intrinsic value and investors belief in success.

Intrinsic value of HCBA

Secured by personal reputation

In the modern society a personal reputation often equates brand’s reputation. As the internet has allowed businesses to become more visible, business leaders became representatives for the values of organization. Reckless tweet or unmindful comment made by a person can steer chaos and materialize in heavy losses. HCBA is build to monetize the value of personal brand, skills and track record. The lifetime of continuous success created by founding enterprises and other endeavours is translated and captured in the continuous growth of personal asset.

Dividend payout

While personal track record provides a direct support for the market appreciation, we understand that hard money tied to a certain asset provide much better stability, clearer expectations and supported growth. That is why every HCBA has a number of built-in options for dividend payout model. That way investors and HCBA issuer can negotiate a mutually beneficial scheme of channeling direct material representation of one’s success to his or her supporters.

Return on investment

Return on the HCBA investment is driven by two major forces of the traditional stock market: market appreciation and dividend payouts. As the individual behind the HCBA reaches new validated results, value of his personal asset grows along with HCBA market price. Hence, by using intelligent analysis to pick the HCBA an investor can build a portfolio that will appreciate in value over time. Additionally, an individual behind the HCBA can decide to buy back part of his outstanding emission, pushing price even higher. Dividend payouts also play a major role in the asset value, as with stock dividends - future cash flows can be discounted to the present value and adjusted for growth to determine an intrinsic value of the HCBA.

Liquidity

Any HCBA exchange participant is able to liquidate his holdings at any given time by selling HCBA to the broader market.

References

1. ^{{Cite web|url=https://identity.fund/position-paper|title=Identity Fund Position Paper|last=|first=|date=|website=|archive-url=|archive-date=|dead-url=|access-date=}}
2. ^{{Cite journal|last=Scharfstein|first=David S.|last2=Lerner|first2=Josh|last3=Kovner|first3=Anna|last4=Gompers|first4=Paul A.|date=2006-07-01|title=Skill vs. Luck in Entrepreneurship and Venture Capital: Evidence from Serial Entrepreneurs|url=https://papers.ssrn.com/abstract=933932|language=en|location=Rochester, NY}}