"2. And when they take the deal, they often behave poorly 3. And when they behave poorly, you don't have great recourse"
Yes. As it turns out when you invest in people with no skill, background or money - your investment goes to zero (excluding outliers). For companies like ycombinator the outliers are everything. But in this horrendous business model they can't capture the outliers' profits without being exploitative.
If you honestly sat me down for 4 hours I couldn't think of a worse idea. Uber for cats? Rating people with a general global score? Selling loans to people out of rehab. I can't do it.
First 15 minutes you learn in any loan business is: Income, Debt-to-income Ratio, Collateral. If those are out the window - you are either better than a trillion dollar loan system - or completely insane.
Yes. As it turns out when you invest in people with no skill, background or money - your investment goes to zero (excluding outliers). For companies like ycombinator the outliers are everything. But in this horrendous business model they can't capture the outliers' profits without being exploitative.
If you honestly sat me down for 4 hours I couldn't think of a worse idea. Uber for cats? Rating people with a general global score? Selling loans to people out of rehab. I can't do it.
First 15 minutes you learn in any loan business is: Income, Debt-to-income Ratio, Collateral. If those are out the window - you are either better than a trillion dollar loan system - or completely insane.