I missed this new concept, which makes a lot of sense, when it came out last June.

Marc Dangeard says the venture capital model, which leaves 99% of the enterpreneurs unfunded, is largely broken, and something new is needed, which he calls the Entrepreneur Commons.

Marc:

“A not-for-profit social network of entrepreneurs providing financing for early stage company through debt guaranteed by a mutual guarantee fund. The financial risk is mitigated by the mutual guarantee fund. The risk on the “management” side is mitigated by the social network: loans are by invitation only, so you will have to be approved by your peers to get in. And the typical scalability issue faced by general partners in a VC fund (which causes the famous “funding gap”) is also resolved by the social network: the size of loans and the number of entrepreneurs involved is no longer a problem, and if anything it helps stabilize the results of the group as a whole.”

The idea is getting traction, and the Skoll Foundation is now holding a lively debate on this proposal. I urge you to read the various contributions at the bottom of the article.

For more information, I keep track of funding proposals through a delicious tag.

Here are related proposals for new types of corporate governance and funding:

Blended Value, http://www.p2pfoundation.net/Blended_Value

Capital Commons Trust, http://www.p2pfoundation.net/Capital_Commons_Trusts

Cooperative Capital, http://www.p2pfoundation.net/Cooperative_Capital

Good Capital, http://www.p2pfoundation.net/Good_Capital

LLP’s, http://www.p2pfoundation.net/Limited_Liability_Partnership

Open Capital, http://www.p2pfoundation.net/Open_Capital

Patient Capital, http://www.p2pfoundation.net/Patient_Capital

Trusts, http://www.p2pfoundation.net/Trusts

Venture Communism, http://www.p2pfoundation.net/Venture_Communism

Workers Capital, http://www.p2pfoundation.net/Committee_on_Workers_Capital