I like this idea, but it could be subject to abuse—a brilliant engineering student may get a large upfront finance then suddenly change course and decide to be part time artist.
Yeah, good point. You could address this through contingencies—have it be part of the contract that you had to carry on in engineering—but I expect investors would simply have to take the hit. This is basically the issue I was talking about in the section on Adverse Selection.
I like this idea, but it could be subject to abuse—a brilliant engineering student may get a large upfront finance then suddenly change course and decide to be part time artist.
Yeah, good point. You could address this through contingencies—have it be part of the contract that you had to carry on in engineering—but I expect investors would simply have to take the hit. This is basically the issue I was talking about in the section on Adverse Selection.