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Roadmap 04/11 (click here to expand/collapse)

Below is the Roadmap for select April 2011 website articles.    Please note  the website contains many more articles covering these same topics. For example, pre-game is integral to our program for attracting better R&D investment opportunities.

Provide Predictable Funding for Unpredictable R&D+
(Introduction to Franchise Capital Mgmt.)

Make funding more predictable (From Unpredictable R&D to Predictable Investor Returns)

  Attract and Retain Long-Term Investors

– Make a Market (You Have to See It to Believe It)

  Reinvest Interim Windfalls+

Make R&D success more frequent * (Execution is the Key to Success)

  Get Smarter at Tracking R&D Advancements+ and Transitions+ (Exits)
  Attract Better R&D-centric Investments
  Increase R&D Productivity (Execution is the Key to Success)

* Although it's still unpredictable

As funding agent+ we match investors and investments (owners of intellectual property+). Our role as funding agent (as middleman) is to keep investors happy, thereby ensuring steady funding for investments. We do this by packaging unpredictable R&D investments into an offering that is more attractive for investors (the perpetual fund). We do this by direct mediation into our unpredictable R&D investments (via franchise operations+), to ensure above-market productivity. Above-market R&D productivity is the only reliable means to ensure predictable funding.

Watchdog

Summary: 

Watchdog+ is integral both to the success of operations, and to the protection of the rights of all parties to the contract. Here’s why.

Watchdog+ refers to an agency that sits at arms-length from the funding agent+. It is only partially funded by the agent (investors also directly fund this agency). It is not staffed by individuals beholden to the funding agent for their livelihood. It makes decisions for the benefit of the funding agent, but also for the benefit of investors and owners of intellectual property+. Watchdog has independence, and provides a level playing field, so participants can agree to its decisions even if those decisions go against them.

Watchdog is a judicial function. It serves up decisions and adjudicates complaints.

  • Decisions include advancements+, transitions+ and other major decisions affecting franchisees.
  • Complaints include meddling, breaches of agreements or promises, cheating, ignoring or overriding decisions, attempts to skirt the rules, etc. (see here)

We centralize these decisions and focus on making them better, as measured by their contribution to financial results. The funding agent oversees Watchdog to ensure this improvement in quality.

Exhibit 1. Watchdog in the Franchise Structure. Watchdog sits within the franchise structure, and the Managing Partnership ensures the increasing quality of Watchdog decisions, but Watchdog is independent of influence on specific decisions by the Management Partnership. It has independent funding and an independent oversight committee.

Funding potentially spans decades and we need consistency of rules. We need the rule of law. Watchdog provides this rule, ensuring:

  • everyone has a chance to state their case
  • everyone has the time and resources needed to prepare their case
  • everyone faces appropriate consequences should they lose their case.

Watchdog ensures everyone follows procedure. There are rules for how decisions are made and you, the participant, must conform to these rules.

Watchdog is the ultimate source of share valuations. The prices of perpetual fund+ shares and i-shares+ are substantially determined by evaluations coming from within Watchdog.1 Watchdog also determines the revaluation of i-shares (see here). This is important in that i-share valuations are subjective, highly consequential, and closely watched by all parties. Watchdog retains the independence needed to avoid the taint of manipulation when setting these prices.

Watchdog is the decision agency. Major decisions affecting much of franchise operations+ are performed within this agency. These decisions are placed outside the reach and manipulation of those most interested in their outcomes. The Watchdog Agency is itself subject to watching. The funding agent tracks the effectiveness of Watchdog decisions over time to ensure they are constantly improving, as measured in the financial results of the firm. But the independence of decision making within Watchdog is closely guarded by parties from outside the funding agency.


Editor's Picks for April, 2011

  • 1. Independent Evaluation+ sits within watchdog and decides advancements, which sets the prices of i-shares, which partially determines the value of perpetual fund share prices, and which often affects derivative share prices.
Further Reading
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Reba Tull
Offline
Joined: 03/30/2011
False sense of security

You know perfectly well I don't have time to be bothered reading reports from the watchdog+ committee. The big print giveth, the small print taketh away. It's just a ploy on your part to lull me into a false sense of security. Watchdog warning letters are wordy and full of legalese. I simply throw them in the trash. Treat me well and I stay. Treat me poorly and I leave. It's that simple.

Watchdog may be fine for the funding agent+, but I won't depend upon it to protect my interest as an investor or as an owner of intellectual property.