The error in this exercise is the assumption that they would even take your money. Dwolla is going to accept your $75K last February? And you are?
Really like ChuckMcM's acquihire/deadpool idea.
Really like ChuckMcM's acquihire/deadpool idea.
Dwolla is too good for my 75k? Good for them. Companies like BofA, Walmart, GE, and literally thousands of other companies would love to take that money and put it to use. Only in the upside down world of SV would you have to be somebody to have your investment accepted.
As far as the prediction market, it would be useless with play money. Skin in the game is what drives efficiency.
When companies raise money, they only raise a given amount. This is true from seed rounds through IPO and subsequent stock issuance. If people want to buy more shares than the company's issuing, some of them won't get shares (and raising the price of equity isn't always the correct answer, especially for an early stage startup).