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These common sense reforms will provide these families with the opportunity to achieve meaningful equity and be mutually advantageous to lenders and the FHA.
"The F.H.A. should set loan terms that help homeowners establish meaningful equity in their homes with the goal of ending their dependence on F.H.A. lending," he said.
In my experience, if a founder doesn't retain meaningful equity at the seed stage, it greatly reduces their motivation and creates a real misalignment between investor and entrepreneur.
In addition to the giving up of meaningful equity there are other downsides to consider before participating in an incubator.
Best case scenario, these Facebookers will team up on a new idea or startup, and Facebook could grab some meaningful equity.
For the other areas of focus they'll look for early stage companies where they can take a meaningful equity stake and provide hands-on guidance from their partners and board members.
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Try starting a software company tomorrow and explaining to a star programmer candidate that he won't end up with a meaningful chunk of equity.
Many felt our valuation was too "rich for [their] blood," or told us they invested only in startups because they wanted to buy a meaningful chunk of equity, or that their philosophy was to provide capital to help launch companies.
Furthermore, the average dividend yield (now 1.7%) is far too low to provide meaningful support for equities.
Among our screening requirements: a positive return on equity and meaningful sales and earnings per share growth for the past five years and 12 months.
"The change yielded a win in the headlines, but provided no meaningful gains for worker equity … nor any actual change in employee contracts or future offer letters," the group wrote on Medium today.
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