Reply To: Questions regarding DPF.

[Warwick]

Breakable wrote: FFS is non-profit. So basically no profit can be happening there.
Maybe some mutual fund could be started to do that, but its a lot of work, and requires a lot of knowledge. Any bankers around here?
What about starting fusion (and not necessary only Focus) mutual fund?

Rezwan wrote:

Now, the only problem with this that I see is that “micro-investors” or, non-accredited investors who want to chip in funds to the experiment, will get nothing back from their investment. They can only donate. So, this tends to discourage people from donating. Let the big fish be a free rider on my dime! Hah! Let them come up with the whole thing. This issue has always bugged me.

Can something be done about this? I don’t know what the law is or how this can be handled but here is a hypothetical. Could FFS collect micro-investments from registered users, and hence keep information about 1) the Micro-Investor and 2) the amount invested. FFS Could then group this money together into amounts large enough such that shares of LPP could be bought @ $50 per share. Finally FFS could have a broker whom is an “accredited investor” and can purchase the shares from LPP.

That would be illegal, because we’d be promising something that we aren’t allowed to promise. I’ve spoken with lawyers at the SEC about this. It’s just not possible. Micro investors can donate, but you can only invest if you have a lot of money. The rich get rich, the poor are patronized. Much can be done about this, unfortunately, it’s all long term stuff that won’t really affect current needs. If LPP were to go public, anyone could invest. It’s at proof-of-concept stage, though, so can’t really be taken public. But it’s now that it needs the investment money.

Quality discussion folks.
I know that there are unit trusts that allow the investor to indicate what they want the money put towards – out of public shares that is. Therefore I wonder if it is inconceivable that such a fund would be willing to invest in a private company if enough members suggested it. Here in the UK the one I was looking about was I think called the CIS Sustainable Leaders Growth Trust (and you don’t have to be rich to become a member, you can invest with just an ISA). (I also have the impression that a firm called Hendersons Global Investors that have a hefty ethical funding arm.)