New Money Tool: Personal Equity for Growth Stage Business Models
by noumena global creative director Lisa Ann (LAMARKS) Markuson
FINANCE EDUCATION DEFINITIONS FOR THIS POST:
Capital: the financing of anything that you own (your assets) whether personal or corporate. your total assets are comprised of financial assets (like cash, stocks and bonds) and non-financial assets (tangibles like land, buildings, equipment, and intangibles like patents, intellectual property, data). all these asset are financed by capital; ie: equity capital (owner’s claim on the assets) and debt capital (other people’s claim on the assets). your capital is your equity in any asset that remains after paying off claims by third parties
Quotient: the magnitude of a specified characteristic or quality. eg: “your investability quotient is high because you have a great reputation”
Equity: ownership (investment) in assets, such as property, a company, or investments, net of any debt owed to third parties
Capital Quotient: Capital Quotient is a measure of the completeness of your “story” (identity, social capital, native capital, business plan, and future roadmap) + an assessment of one’s investability based on the completeness of that story. aka CQ
Personal Equity: Personal Equity is a valuation that builds on your CQ to project your future earnings and value creation potential. it is an asset class that describes the equity value of investing in solopreneurship and its resulting ventures. aka PEEQ
Covered in this post:
what is personal equity?
who should participate in personal equity valuation?
what you get out of your capital quotient and personal equity
Hagrid Was Harry Potter's Angel Investor: Noumena Can Be Yours
Imagine this:
It’s your 18th birthday. An investor shows up on your doorstep and says “You have the potential to make over 1M dollars in your lifetime. I want to invest $25k in you now to give you a head start. If you fail at your chosen path, I lose out. But if you thrive and grow, then I can share in a percentage of your success throughout your career.”
What do you do?
If you would take the equity investment from the doorstep long-term investor (with due diligence of course) and use it for your education, to prototype an invention, to cultivate a scalable talent, or otherwise level up your potential, you’re in good company with Noumena.