[icebraining]

There are plenty of small companies doing exactly those kinds of projects for SMBs; I worked for one for five years (it's still doing fine, I just moved on).

Rather than a bond, which would be unwieldy to implement, we'd take a risk: we develop it for the first few customers for a percentage of the cost, but keeping all rights to the code so we can then reuse it. Some projects pay their bills and some more, others not so much.

As for the n-sided market, we used the typical solution: having employees.

In our case, we used an open source platform (Odoo) which comes with the generic business modules - CRM, Accounting, Invoicing, ERP, etc - and which allowed us to build integrated functionality for the specific industry. We had clients of all sorts, from one-man dental offices to international clothing manufacturers.

(Disclaimer: I still work with Odoo, but I was never an Odoo SA employee)

[erikpukinskis]

A risk is a bond you sell yourself.

I would argue the issuance of the bond and the separate market for holding risk is key.

Developing a market is key to being able to fund smaller and smaller client segments. This is what I talked about above... with a single origin of corporate ownership there is an upper bound on the number of managers. You need to separate into two markets to meet the entire demand. It's just a matter of graph traversal distances. N corporate boards cannot manage N^2 managers.

But N^2/10 agents can manage N^2 managers. And they take 25%.