FROM OUR EXECUTIVE DIRECTOR:
What if there was a way to fund start-ups that cost little, used existing infrastructure and shared the risk around?
There is. The one big idea I was presented with by an attendee at the Melbourne node of Senator Lundy’s Public Sphere #3 – Future of Australian ICT & Creative Industries, held at Trinity College, 28th August past.
HECS (College Loans) funding of Start-Ups.
How would it work? Start-up companies borrow seed capital (say up to the value of a set limit per annum) against director’s future wages/earnings. Providing the opportunity that university & college graduates take, of college loans.
The repayment of funds is taken as a percentage of wages based on taxable earnings – and collected by the Tax Office, thus leveraging tax infrastructure. The incentives/enforcement aspects are already inherently dealt with.
Investing in Local innovation.
Those taking the money have the incentive to succeed – as they repay the loan from future tax, win or lose – the same argument used for College Loans.
The question is how many small ideas are stopped by lack of small scale seed funding? The next stage is an Innovation Analysis Report of this proposal. This idea could be applied also to the USA, UK or other markets.
As you know 2thinknow, work to pick & develop winner ideas in innovation. We believe this idea is a clear cut winner.
Please contact 2thinknow if your Government, NGO or Agency would like to fund (and expedite) the writing of such a report.