How To Bet Money On Your Future Success 188
Posted
by
timothy
from the show-your-work dept.
from the show-your-work dept.
waderoush writes "Say you're in your early 20s, you're finishing college or graduate school, and you're smart but poor — and you've got some big student loans hanging over you. You're pretty sure that within 10 years you'll be selling your first startup or earning a high-six-figure salary. But you need some money *now* so that you can actually start the company, and avoid taking a corporate job. Shouldn't there be a way to calculate how much you'll be worth, and borrow against that promise of future success? Upstart, a new Palo Alto investing operation founded by a group of ex-Google employees, thinks the answer is yes. In a new spin on the crowdfunding model, the organization gathers data from recent graduates such as schools attended, academic transcripts, job offers, and credit scores. Its 'pricing engine,' based partly on techniques developed to assess job applicants at Google, determines how much each aspiring 'upstart' should be allowed to raise from investors per each percentage point of their future income. Upstart has already helped 35 young people raise amounts varying from $10,000 to $170,000; the upstarts, who must pay the money back over a 10-year period, say they're using the funds mainly to retire student debt or bootstrap startups. 'We can look at a 25-year-old and very quickly assess whether he or she would be successful at Google,' says Upstart founder Dave Girouard, formerly the head of Googles $1 billion enterprise apps division. 'My whole thesis was, if you could use the same algorithms to predict whether he or she would be successful beyond that, in the business world, that would be pretty useful.'"
Re:This is the dumbest idea (Score:5, Funny)
I'm in a bettin' mood. How can I short this guy?
Wow (Score:5, Funny)
Someone at Google thinks that a) they have figured out a way to predict future success and b) this is the best way they can take advantage of that knowledge? Just... wow.
Re:Google employees (Score:5, Funny)
If a company has 53,000 employees, they can't all be geniuses. I've encountered 3 Google employees in a professional setting and heard one reliable first-hand story from my wife. Out of that sample of 4, all the Googlers impressed me: two with their brilliance, and two with their stupidity.
To be fair, this is "crowdfunding" idea comes from someone whom Google spat out ...
Re:Three words: (Score:4, Funny)
Almost impossible to prove. Unless you posted your plan on /.
Re:This is the dumbest idea (Score:5, Funny)
When I was in my late thirties, a young (around 24 years old) programmer smugly and condescendingly told me that by the time he was 30, he'd be "retired and on a beach somewhere". It was quite insulting.
So I sighed loudly and said "When I was your age, I said the same exact thing." Then I looked around, held out my arms, and said "So, how do you like your future? It's not bad, there's a pension at some point."
This was at a government agency, where careers go to die. He turned white as a ghost and changed the subject.
Re:This is the dumbest idea (Score:5, Funny)
They just explain on their resume how they performed a cost-benefit analysis and that a bankrupcy was the most strategically advantageous plan.
Will open plenty of doors on Wall Street, Investment Banking, etc. for them.