How It Works

bandwith is a new framework for rapidly developing and scaling a brand new company.

Here's how it works:

First things first -- Hi, I'm Max Koch, the initializer behind bandwith.

 

To kick things off, I'm going to post a description of the bandwith program and an application form on a number of relevant job boards and forums to attract people of all backgrounds and ages to apply to be a member of either the inaugural bandwith Capital team or the bandwith Social Capital team. Each team will ultimately consist of 100 members and each member will have a 1% equity stake in their team's company. I will provide initial funding of 1,000 USD to each of the two teams, which I will ask to be refunded to me (with no additional interest or anything) if and when the company has over $15,000 in assets. A thousand bucks won't get a team far, so each team will have to bootstrap things until its company either captures investment or starts generating revenue.

 

The bandwith Capital team is focused on maximizing the financial success of the company that it will form. This is largely focused on generating financial returns, though positive environmental, social and governmental impacts are desired as by-products.

 

The bandwith Social Capital team is focused on maximizing both the social impact of the company and -- to an equal or lesser degree -- the financial success of the company. This team will likely decide to form either a public benefit corporation or a socially-minded for-profit company, but ultimately that's up to the team to decide on.

On both teams, all initial decisions are made by consensus. Even the rules which govern each team will be developed and voted upon by the team itself, as will the business model (or business models) that are pursued by that team. At some point, the team may decide to vote to allow an individual or committee to make decisions without the whole team needing to be involved, but again, that's up to them.

Selection of team members from applicant pool

For each team, I will select a diverse group of nine applicants with strong entrepreneurial backgrounds to form the Selection Committee, and then those nine individuals and I will select the additional 90 individuals that will make up that team. None of the original 10 members of each team, including myself, will receive any special compensation or benefit as a result of being on the Selection Committee.

Once each team has 100 members, it will be up to the team itself to decide what direction and business model(s) to pursue. Like any company, the team's company can hire contractors or staff (either from the team of 100 members or from outside of it) which can fill the various needs of the company. If they manage to get to that stage, the 100 members can decide when, if ever, to accept investment, dilute their equity, or even just to sell the company.

The end point is up to each team to decide. The team could vote to collectively sell the company after six months or 10 years, or the team could create a process for members to sell their specific equity at a time that works best for each individual. And what if this whole thing fails and no company of value is created? That's always a possibility in the world of startups, but we believe that team members will be better for having been a part of the team, especially because they will have forged new relationships and made productive use of this historic period of time.

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