NGDCs on a Cross Subsidy Venture Capital Model NGDCs .. Last day a Blue Ponman happened to come inside a building that jk is renovating which seemed more like a Re plantation of “Parijatha Tree” as per the command of “Sathya Bhama” during Palazhi Man_Dhan process.. This made me think about aspects that might be involved in the story of “Ponman” in Malayalam. The too intelligent “Ponman” does its house and lays eggs on the sides of Pond. But then when Rainy season comes and water goes up the Ponmans house also gets destroyed with Water Rise in the Pond. The story made jk think about aspects of Cross – Subsidy that probably needed in a Venture – Capital Model. And it goes something like this. Suppose if there is a highly profitable high risk Venture Capital idea. If there are many partners A, B, C,D,E,F etc.. investing in it where the idea is that of A. If B,C,D,E,F etc.. are investing for the idea with an 80% Capital, A shall go for investing against that idea with a 20%. Capital. If A makes profit against the idea, 20% of As profit shall be equally distributed among the Venture Capital Partners B,C,D etc as a Cross Subsidy incentive.. whereas if B,C,D,E,F etc make profit, 20% of the profit that each of them make needs to be given to A as Driving Charges.. Probably interesting to think about many aspects in such a Venture Capital Model.. Again I am not very sure about the workability of such ideas and practitioners may use such Models at their own risk.. jayakrishnanmenon.wordpress/2014/01/21/public-statement-of-my-will-dated-20th-january-2014/#comment-143
Posted on: Tue, 21 Jan 2014 03:58:53 +0000