There are now a handful of companies offering what are called "human capital contracts" or "income-share arrangements" to normal people. These contracts don't involve actual stocks, but they have stocklike characteristics. People who sign up for these programs agree to give a percentage of their income to their financial backers for a period of several years, in exchange for a one-time cash infusion. It's a sort of Kickstarter for people, a crowd-funding platform that provides backers with monthly royalty checks instead of signed T-shirts.Take Upstart for example. Individuals share there story and experience on the site, along with their future goals and intended use of an investment -- anything from starting a craft beer business to paying off student loans. Then Upstart uses a statistical model to predict the individual's future earnings and determine a funding rate that the individual can raise for every 1 percent of income they share with backers. Individuals are then able to seek out cash infusions from backers in exchange for as much as seven percent of their annual income for five to 10 years.
This post was originally published on Smartplanet.com