The Fairshare Model

The Fairshare Model is a performance-based capital structure for companies that seek venture capital via a public offering.  You are at this site because you have expertise in and/or interest in capital formation for venture-stage companies.

I hope to publish a book in the first quarter of 2016 that promotes the use of a performance-based capital structure by companies who wish to raise venture capital via a public offering. I call it The Fairshare Model because it aligns the interests of investors and employees.

I “crowdvet” my draft material here, hoping to receive critical comments, concerns and suggestions. In particular, I look forward to messages that begin “The Fairshare Model will not work because ____”, “What about ______?” or, “Have you considered _____?”.

Click on the “Resources” tab above. You will find a draft of the book, which has seventeen chapters so far. If you have time for just one, I suggest chapter ten, The Tao of the Fairshare Model. It addresses how a capital structure allocates uncertainty. It also describes the most remarkable quality about the Fairshare Model–it provides venture-stage companies a reason to offer public investors a low valuation. 

I have about 95%of a full draft complete. As I work on new chapters that deal with behavioral finance, game theory, secondary market valuation and some other wonky issues, I am investigating options to publish. Right now, I’m considering using crowdfunding to raise the money to have the book edited and prepared for publishing.

I’m grateful for every bit of feedback I receive–it affects the end result.

The Resources tab also has slide decks that I have used to present the Fairshare Model.

I hope you find the Fairshare Model compelling.

Karl M Sjogren