Not to sound too negative, but hasn't this already been accomplished already with the stock market and the capital pool corporation? The only real difference is that with a capital pool corporation you are putting your money behind people who are looking for a reverse takeover, and with your proposed concept you are putting your money behind an idea.

Also, in the model, who owns the rights to the IP?

I like this, similar to the filmfunder idea, this idea funder concept allows ideas to get financial support in the early stages of development, a difficult period to raise VC and a period you have to give an arm and a leg away in order to attract commercial funding.

It also gives an opportunity for the man in the street to do some speculative investments, albeit very high risk, but with the advantage that if one or two make it in a big way there is no investment house/brokerage taking large chunks of the profit before you see your share.

Small amounts invested by thousands of people in their chosen ideas without the profits being eroded by balancing a mutual fund of basket investments would be attractive and an exciting speculation to make .. especially on an informed choice.

Sorry Cambrian House, but it also could be a much quicker way to market for ideas that don't need too much investment or development as the author doesn't have to wait what could be an age to see an idea supported by the community for crowdsource development.

Crowdsource is great and has its place but i think this is an excellent alternative to the Cambrian House concept and one that could even be moulded into the Cambrian House's concept .. what better confidence index than when people are prepared to invest not just their time and votes but their money into an idea!

This idea could be a great way of funding the first phase of developments, an incubator of sorts, that could then optionally allow the author and shareholders in the first phase to float the now developed and demonstrable ideas into a second level of funding for major investment to take it into the big league.

Risks for the VC funders are reduced by having a completed product to measure and evaluate, the author with its new shareholders are a stronger entity to negotiate with the VC funders so the equity exchange for VC funding could be substantially less than what it would be on first phase approach which may have nothing more than a idea description and business plan .. I do like this.

Due to over regulation and control of the U.S.A and European countries by the authorities this may well have to be housed in an offshore entity. But again that should be no big problem, but it would be important to this idea that there are no undue constraints and red tape applied by bureaucratic laws and regulations that inhibit the effectivenes of this idea and its simplicity of funding.

Obviously protections and checks and balances must be put in place to protect investors but from the outset this idea funder would plainly market itself as a very high risk high reward investment opportunity.

To answer 4bitdecoder, no i don't think this is the same as the stock market or pooled investments.

The IP rights is a minor detail to be worked out, whether they are housed in escrow or a registered entity is not a big issue to resolved.

This idea has BIG potential!

Thank you very much Doymarn for the long comment and the glowing praise!

To answer the comments from 4bitdecoder, there would be no IP issue. If I owned shares in Google, then Google still owns the IP. This is no different. Not sure what a capital pool corporation is, but I feel my idea is sufficiently different to be of interest. In any case, search had been "done before" Google. Even if you do something that's already been done, if you do it much better than others it stands a good chance of success.

I love this idea, I think its awesome.

Maybe I'm missing something but how is this different than Cambrian House model?

angelcrowd?

I think CH is moving towards this, it may take some time but we will get there.

Surely this is partly covered by http://www.gobignetwork.com/ (amongst others)

i like htis idea

I already spend 40%..err 20% of my time here...

I would fear that the money would go to waste. Folks would have to understand this is a VERY high risk investment. VC type investing is not for the faint hearted.

Also, I don't think the Google folks are creating cool things because they get 20% "whatever" time... it is because Google is highly selective on the employees they hire. Pick good people and you will get good things.

I would be scared. I would rather do it locally