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PAVE is a web platform that allows young entrepreneurs, artists, current students and recent graduates to raise funding directly from accredited investors to help finance their education and/or launch their businesses and careers, in exchange for a percentage of their future income. In addition to providing financial support, the investors often double as mentors. The video above provides more details. According to the website:
Pave started with a simple idea. Everybody wins when young talent is combined with resources and wisdom from experienced people.
Pave is a community where people create teams that unlock the potential of young careers through an innovative social-financial agreement. These young, driven individuals come to Pave to raise funding to further their education, pay off student debt or pursue a career opportunity, all with the goal of taking their careers to the next level.
When a backer chooses to support a prospect on Pave, the investment is in whatever work the prospect chooses to pursue over the next 10 years. This allows the prospect freedom to take smart risks, such as starting a business or taking the time to find the right job, while it affords the backer a more stable investment.
In a loan situation, the goal of the borrower is to pay off the debt as quickly as possible. But the lender doesn’t benefit if the borrower does well and pays faster. With Pave, on the other hand, backers are allies who share in either the failures or achievements of their prospects. In other words, backer and prospect interests are aligned.
Fixed loan payments can become unaffordable if the borrower is un- or underemployed, and looming loan payments can force someone to take a job just to pay off debt. Pave payments remain affordable to the prospect because they are directly based on the prospect’s earnings.
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