A simulated system of small business equity, as described by Steve Randy Waldman, aka @interfluidity.

I currently plan to use the FMS package to simulate the purchase of future dollars from businesses by investors, and the eventual maturation of that equity when it is realized as revenue. Some instructions are here.

This is the simulation cycle I expect to implement:

1. Create a list of businesses, each with an expected revenue stream and a risk factor.
2. Create a list of investors, each with a range of acceptable risk and a time horizon.
3. Offer dollar futures from all businesses to investors.
4. Allocate futures from businesses to investors through a simulated sale or auction
5. Generate one or two variables of economic context that all the businesses are subject to
6. Generate a revenue cycle for each business based on some pseudorandom variance from the economic background conditions
7. Calculate which dollars of revenue will become recouped futures
8. Repeat steps 5 through 7

Questions:

• Is there a secondary market?