What do you think are the collection & BK aspects of a "personal IPO"?

[joshuagraham]

http://nymag.com/daily/intelligencer/2013/11/ipo-of-you-and-me.html

This new financial device seems to be a contract in which an individual pledges a certain portion of his personal business income for a certain period of time in exchange for an upfront payment. It seems that this is nothing more than a business loan with a personal guarantee, subject to the same laws for collection & BK as any other personal loan, with the payment terms simply set up in terms of the individual's business income.

As an investor, I think that I would be very careful in pricing this loan - case in point, IMHO, this example of a mid-career NFL running back wanting $10M for 20% cut seemed ridiculous even before he got injured.

[tobee43]

well most people on this site are not heavy investors, but it sounds like a lose lose to me.