[morisy]

This particular execution - a lump sum of $600k for a lifetime's earning percentage of a successful non-profit entrepreneur - seems absolutely insane to me, but I've wondered about a similar arrangement under more narrowly contrived circumstances: Invest in promising (18 and over!) students by paying off their school for percentage of their salary, rather than dumping huge loans on them that demonstrably reduce their opportunities.

Right now, the armed forces in America regularly engage in a similar practice by paying for school in return for a commitment, and maybe their agreements could provide a model for a more entrepreneurial version down the road: We'll invest in your education plus a start-up stipend, in return for a stake in you and your projects during college + x years after, with a clause that you can leave at any anytime and assume your debt with a high level of interest.

[OmniLarry]

Sounds kind of like the public school system (not including university) and taxes.

[HeyLaughingBoy]

The version of this that I've seen work is the "Northern Exposure" one (remember that TV show?).

I had a friend whose MS in Nursing was paid for by a state government and in exchange she had to agree to work for a number of years (I think 3) at a hospital in a low-income neighborhood that was having trouble attracting good nurses. Yes, she was paid, etc! It worked out great since she got a free education and found out that she enjoyed working with that particular population and the state had one more highly qualified nurse on its roster.

Win-win incentives like these have a fighting chance, "opportunities" that are heavily weighted in one party's favor tend to not do so well.

[dantheman]

You can leave at anytime by not working.

[morisy]

That's definitely another way :)