[thomas_howland]

Credit scores are loose proxies for a conscientiousness score (which is why they correlate with all sorts of useful stuff like likelihood you're going to wreck an apartment, get in a motorcycle accident, or abscond with the till). However there is ample psychological research indicating that you can locally boost conscientiousness with a variety of techniques, mostly involving continual follow up, breaking compliance into small steps, and reminding of the benefits of compliance via frequent positive reinforcement. (It's fair then to ask if this really counts as "conscientiousness" per se given that level of intervention, or a more abstract measure of task completion).

It seems like this fund is using this to its profit. Good for them. It does almost seem, given that level of investment in the actual enterprise, like equity or some sort of hybrid instrument better represents the risk of the investor & the amount of effort they're putting into seeing the ventures succeed.

(Incidentally, this pretty solidly mirrors the approach to high-risk students of basically saturating them with life coaching, which seems to work pretty well as long as you can actually invest that level of resources continuously).