15 years later, it’s finally happening. VentureBeat reports that the Stanford grad Kjersten Erickson’s Thrust Fund (I guess the name is a play on “Trust Fund” but will probably cause snickers nonetheless) is implementing my Personal IPO concept.
She’s selling a 6% stake in her future income for $600,000. That implies that the NPV of her lifetime income must be at least $10,000,000.
I love that the concept is finally getting a hearing, but fear that it will crash and burn because of mispricing.
A lifetime NPV of $10,000,000 is pretty rich…as much as we’d all like to believe that success is just around the corner, most of us would gladly take $10,000,000 in cash right now for all the money we’ll make in the future.
That being said, if someone is really interested in owning a piece of Chris Yeh, I’ll be happy to sell you a 1% stake for $1,000,000.
(Cross-posted @ Adventures in Capitalism )