, 4 tweets, 1 min read Read on Twitter
A lot of business models in e.g. publishing and the music industry already are ISAs, better known as equity; the offer is something like "We'd like to invest $20k into your book at a $5k pre-money valuation. Btw our terms have, let's say, a wee bit of structure."
This is re-using approximately accurately some startup financial jargon which is designed to be opaque for the purpose of pastiche, so I'll explain what that just said in words that are a little more generally well-known.
The publisher (which is analogous to an investor) is offering the author a payment of $20k for equity (ownership) of the book. In this approximation, the publisher has offered $20k for 80% ownership.

The term "structure" here means "there are material strings attached."
For example, in an investment in a startup, even an 80% owner very rarely gets to dictate managerial decisions (short of replacing management).

Publishers generally get control over pricing, really important marketing decisions (cover design, who they choose to sell to, etc).
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to Patrick McKenzie
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!