Project Financing
The Project Financing models that are sought to be used for #Webizen at this stage, is entirely built upon a fixed returns model. Whilst users may in-turn produce commercial products that are able to be commercialised using other commercial models; methods are sought, via the WebizenAlliance related frameworks to seek to ensure a balance between ensuring people are reasonably afforded the means to be paid (well) for useful works; whilst also, seeking to ensure that people are not requiring on-going rents for technology related works that are necessarily required to support the human rights and related considerations for all people; and that in-turn, we are also best equipped, to better support our biosphere.
In a recent article on Tech Crunch about OpenAI it states: "OpenAI has an unusual corporate structure, operating under a “capped-profit” model that limits backers’ returns to 100 times their investment — or possibly less in the future.""
Which thereby provides some external validation for the proposed fixed returns method.
Therafter: The method of caculation does not seek to unnecessarily discriminate against the source of investment funding. What this means, is that the model is moreover centered around modelling the supply of resources that are required to achieve some sort of goal.
Resources may include; The Supply of,
- Useful KnowledgeWork and/or LabourWork
- Financial resources (ie: cash)
- EquipmentAndSupplies
- IntellectualProperty
- Resources
This is in-turn intended to support a framework that is in-effect, compatible with the Fundamental Charter of Christian Ethical Finance.
Fundamental Charter of Christian Ethical Finance
Which is in-turn expected to be compatible with many of the ValuesCredentials frameworks.
OpenAI Q & A Notes
Here's some Questions ("Q") i've asked ChatAI about traditional project financing models
Q: what are the typical investment rates of return sought by different types of investors and/or organisations that provide unsecured loans for an early stage project
A: The typical investment rates of return sought by different types of investors and organizations that provide unsecured loans for an early stage project can vary widely depending on a number of factors, including the level of risk involved, the stage of the project, and the investor's overall investment strategy.
In general, investors and lenders who provide unsecured loans for early stage projects may be seeking higher rates of return to compensate for the higher level of risk involved. This could include rates of return in the range of 10-20% or higher.
However, it is important to note that these rates are only estimates, and the actual rate of return that an investor or lender is seeking may vary significantly based on the specific details of the project and the investor's risk tolerance and investment objectives. It is also worth noting that the rate of return sought by an investor or lender may not necessarily reflect the rate of return that the project is able to generate.
Overall, it is important for entrepreneurs seeking funding for early stage projects to carefully consider the terms and conditions of any unsecured loans they are considering, including the rate of return being sought by the investor or lender.
Q: What is the typical return on investment expectation for Early Stage Venture Capital?
A: The typical return on investment (ROI) expectation for early stage venture capital can vary widely depending on a number of factors, including the stage of the company, the industry sector, and the specific investment strategy of the venture capital firm.
In general, venture capital firms that invest in early stage companies are typically seeking higher rates of return to compensate for the higher level of risk involved. According to some estimates, venture capital firms may typically aim for an ROI of 3-5 times their initial investment over a period of 5-7 years.
However, it is important to note that these are only estimates, and the actual ROI achieved by a venture capital firm may vary significantly based on the specific details of the investment. Venture capital investing is generally considered to be a high-risk, high-reward proposition, and it is not uncommon for some investments to fail to deliver any return, while others may achieve significantly higher returns.
Overall, it is important for entrepreneurs seeking venture capital funding to carefully consider the terms and conditions of any investment offer, including the expected ROI and the time frame in which the venture capital firm expects to see a return on its investment.
Q: What would be the fixed rate of return if the compensatory amount for a successful venture was capped to a specified fixed multiplier or percentage, for an early stage project?
A: The fixed rate of return if the compensatory amount for a successful venture is capped to a specified fixed multiplier or percentage for an early stage project would depend on the specific terms and conditions of the investment.
For example, if the compensatory amount is capped at a fixed multiplier of 2x the initial investment, and the initial investment is $100,000, the fixed rate of return would be 100% (2x the initial investment), assuming that the project is successful and the cap is reached.
On the other hand, if the compensatory amount is capped at a fixed percentage of the initial investment, such as 50%, and the initial investment is $100,000, the fixed rate of return would be $50,000 (50% of the initial investment), assuming that the project is successful and the cap is reached.
It is important to note that fixed multipliers and percentages can be used in a variety of different investment structures, and the specific terms and conditions of an investment will vary depending on the specific details of the project and the preferences of the investor. It is up to the investor to carefully consider the terms and conditions of the investment, including any caps on the compensatory amount, before making a decision.