Hey! Good post. Can you please elaborate on this? If the goal is genuinely to strengthen innovation and earning capacity, then design the institution around the real gaps: guarantees, first-loss structures, and other instruments that change the risk profile so private capital can step in at scale.
What’s more to elaborate? The government has the liberty to use investment structures that incentivizes private capital to step in, by giving guarantees for additional capital, or taking losses before private capital incurs losses.
Hey! Good post. Can you please elaborate on this? If the goal is genuinely to strengthen innovation and earning capacity, then design the institution around the real gaps: guarantees, first-loss structures, and other instruments that change the risk profile so private capital can step in at scale.
What’s more to elaborate? The government has the liberty to use investment structures that incentivizes private capital to step in, by giving guarantees for additional capital, or taking losses before private capital incurs losses.