Reply To: Questions regarding DPF.

[Warwick]

Rezwan wrote:

My understanding was that LPP didn’t need any more cash to finance proof of concept but now it’s not clear for me? Rezwan?

What gave you this understanding? Let me know so I can clarify it elsewhere on the web.

LPP has partial funding. They will need more funding to complete the proof of concept.

It was around the time of the Economist article, something just before that. In fact it was the impression I got from this site I think.

I’m a bit mystified. How could it make sense for a large-scale private investor (was it an investment fund?), that could afford to back the whole thing, to pay for half the development work, with no guarantee the other half will ever take place?
Surely that’s a much worse risk for them than just the risk of the design not being successful?
Or do they invest some and then wait and see whether the results look any good before investing more?
Hard for me to understand their course of action.

Rezwan wrote:

Is the primary problem with the above solution just the lack of expertise and the money for office supplies and shipping?

Money isn’t just for office supplies and shipping. It’s mostly for expertise. The major budget of a nonprofit organization is staff salaries. The staff raises money to cover their own salaries, and the programs. Programs also usually involve salaries. Like, if you want to give healthcare to people, you pay the people delivering the health care. If you want science to happen, you pay scientists to work.

So, your intention is raise $1m in donations. Maybe that could happen, you know better than I.
But if that proves difficult, and the main problem is LPP salaries, LPP could always just offer to make their staff junior partners. Offer a share in the profits and a low salary in the meantime, rather than paying out at the market rate upfront.

It also seems more likely that LPP could raise more backing if it were possible for micro-investors to invest through an investment fund rather than through donations to FFS. Though who can say for certain.