Claims / C-1SBE5TPH6F
EmpiricalRequires evidence
China's guiding funds drew private venture capital in by having the state share losses but sell its upside to co-investors at a pre-set price: the public stake raised private investors' upside without removing their risk, and the state got its money back with a profit. Hidalgo reports Chinese venture capital going from about 3 to over 26 billion dollars in the first half of the 2010s. A commons treasury could seed outside capital the same way, taking a capped-upside first position in contributors' ventures.
Evidence 1 passage
groundsThe Infinite Alphabet, hidalgo
If the companies supported by the fund failed, everyone lost their money, including the government, but when the companies succeeded, the other investors could buy the government shares at a predetermined price.
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