Ambitious framework bridging tech innovation with community ownership. The extension of the Panthers' demands to include 'data' as infrastructure is particulary sharp given how much value extraction happens through data collection nowadays. I'm curious how the CAFE IRL model handles downside protection for small investors compared to traditional convertible notes, since equitible access matters less if people get burned on bad bets.
Thank you for the encouragement! Regarding downside protection, we intentionally combined aspects of the convertible note with a revenue share instrument to provide quarterly returns to investors, regardless of venture performance. All investments involve risk, of course, so nothing is guaranteed, but as we grow the company, our investors would receive regular repayments while maintaining the opportunity to convert their principle upon a triggering event. It is experimental model, but we think it could provide investors, regardless of their commitment, an opportunity to have capital return to them, and hopefully provide a real feeling that the business is really working on growing. We're advocates for investor education and have published several works helping non-accredited investors understand how to build a portfolio in addition to analyzing risks for themselves, just like accredited investors do. Thank you for the question, and let me know if you have any followup.
Ambitious framework bridging tech innovation with community ownership. The extension of the Panthers' demands to include 'data' as infrastructure is particulary sharp given how much value extraction happens through data collection nowadays. I'm curious how the CAFE IRL model handles downside protection for small investors compared to traditional convertible notes, since equitible access matters less if people get burned on bad bets.
Thank you for the encouragement! Regarding downside protection, we intentionally combined aspects of the convertible note with a revenue share instrument to provide quarterly returns to investors, regardless of venture performance. All investments involve risk, of course, so nothing is guaranteed, but as we grow the company, our investors would receive regular repayments while maintaining the opportunity to convert their principle upon a triggering event. It is experimental model, but we think it could provide investors, regardless of their commitment, an opportunity to have capital return to them, and hopefully provide a real feeling that the business is really working on growing. We're advocates for investor education and have published several works helping non-accredited investors understand how to build a portfolio in addition to analyzing risks for themselves, just like accredited investors do. Thank you for the question, and let me know if you have any followup.