Opinion: Capitalism with a human face

Years ago, buying shares of people in the same way you’d invest in shares of a company sounded like ham-fisted sci-fi satire. Today, these “human capital” contracts are very real.
In a report for Business Insider, Alison Griswold looked at startups Upstart and Pave, which are pioneering the field of direct human capital investment. They work like this: Young people put together their credentials and request a target amount from a pool of investors. Upstart and Pave run applicants through a prediction algorithm that generates an interest rate based on their expected future incomes during five- or 10-year contracts. Over the life of these contracts, investors own minority shares not in ideas or plans, but in people themselves.
In other words: the startups allow venture capitalists to pay a lump sum to workers up front in exchange for a portion of their future earnings.

Read more
(Photo: Getty Images)

Opinion: Capitalism with a human face

Years ago, buying shares of people in the same way you’d invest in shares of a company sounded like ham-fisted sci-fi satire. Today, these “human capital” contracts are very real.

In a report for Business Insider, Alison Griswold looked at startups Upstart and Pave, which are pioneering the field of direct human capital investment. They work like this: Young people put together their credentials and request a target amount from a pool of investors. Upstart and Pave run applicants through a prediction algorithm that generates an interest rate based on their expected future incomes during five- or 10-year contracts. Over the life of these contracts, investors own minority shares not in ideas or plans, but in people themselves.

In other words: the startups allow venture capitalists to pay a lump sum to workers up front in exchange for a portion of their future earnings.

Read more

(Photo: Getty Images)

  1. poeticallyhuman reblogged this from aljazeeraamerica and added:
    I have no words for this, but thought I’d share it around.
  2. claralalalala reblogged this from aljazeeraamerica
  3. mademoiselle-red reblogged this from aljazeeraamerica and added:
    I am disgusted
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  11. privatesectorbureaucrat reblogged this from afloweroutofstone and added:
    I see this is coming back, but in the form of loans to people you don’t know rather than loans to rising athletes and...
  12. redwhiteandblue24 reblogged this from aljazeeraamerica
  13. garfio-addicted2girls reblogged this from aljazeeraamerica
  14. electrocunttherapy reblogged this from aljazeeraamerica
  15. afloweroutofstone reblogged this from aljazeeraamerica and added:
    This is simultaneously a great idea and absolutely terrifying
  16. bjsforbaskerville reblogged this from aljazeeraamerica
  17. unicornvomiter reblogged this from aljazeeraamerica
  18. scholarly-rhythm reblogged this from aljazeeraamerica and added:
    It was only a matter of time before they just came right out and said it.
  19. nature-soul-mixture-gold reblogged this from aljazeeraamerica and added:
    i’m not in a position to properly analyze this right now, but all i know is that this does not sit well with me at all....
  20. morbid-florist reblogged this from aljazeeraamerica
  21. aljazeeraamerica posted this