We aren't satisfied with existing funding models for "triple bottom line" or "social impact" businesses, nonprofits, and startups. We are in search of a structure that solves three big and three small challenges.

Big ones

• It shouldn't benefit funders when startups "sell out" by trading off social benefit and beautiful vision for a capitalist or user growth or engagement successes. But it should encourage growth and engagement when aligned with social benefit. (See Time Well Spent Metrics)
• It should avoid the incentive mismatch & risk asymmetries of VC/angel (many bets) vs founders (one bet)
• It should be at least as good as VC in solving cashflow challenges

Small ones

• Lets founders and employees be turtley (see Turtleocracy)
• Gives founders great leeway to make bold strategic shifts, including those that might switch markets, change employee makeup, and concern investors.
• Better supports new, values-permeable org structures (see ‣ under "peak inspiration")

So....

Our best idea currently—but please help us improve on it!—is the metrics-conditional equity swap. The idea is that the fund (in early cases, the human systems fund) will trade equity with the startup, and also pass in a cash investment. But this trade will be conditional or revertible, and it will revert if the startup either fails to measure or fails to do well on, metrics regarding user meaning and user values.

<aside> 👉 Right now, Human Systems itself is raising money with some commitment to metrics, see ‣.

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