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Guest: Dr. Brian Hanley; Topics: New venture banking & Default Insurance Notes (DIN) for profitable long term project financing including space projects. Please direct all comments and questions regarding specific Space Show programs & guest(s) to the Space Show blog which is part of archived program on our website, www.thespaceshow.com. Comments and questions should be relevant to the specific Space Show program. Written Transcripts of Space Show programs are a violation of our copyright and are not permitted without prior written consent, even if for your own use. We do not permit the commercial use of Space Show programs or any part thereof, nor do we permit editing, YouTube clips, or clips placed on other private channels & websites. Space Show programs can be quoted, but the quote must be cited or referenced using the proper citation format. Contact The Space Show for further information. In addition, please remember that your Amazon purchases can help support The Space Show/OGLF. See www.onegiantleapfoundation.org/amazon.htm.
We welcomed back to the show Dr. Brian Hanley to discuss his new economic idea for financing long term risk ventures through venture capital, including Mars missions. For the first segment of our 94 minute two segment program, Dr. Hanley spent significant time with us explaining economic concepts, how money is created, the role of debt and money and financial instruments such a default insurance notes (DIN). It is important to listen carefully to this discussion as it helps to understand what Brian suggests as a possible new way forward in financing space and other projects while significantly increasing the ROI through the multiplier effect. You also want to pay attention to Brian’s discussion of the multiplier effect with his idea as it is crucial to understanding his program and even implementing it.
Before the first segment ended, Brian used company and industry examples to help us understand his concept. Don’t miss these discussions. He also explained in detail how the DINs would work and the needed role of insurance, plus the banking and government regulatory concerns. In addition, Brian said his plan agreed with the import Basil Accords. As the first segment was about to end, our guest suggested his plan would shake up the venture capital industry. Several listeners asked email questions during the first segment.
In the second segment, my initial question was about the long-term investment nature of a space project, especially one going to Mars as it would likely have a very long payout if at all. I wondered how this might be of interest to venture capitalists given they usually want to be out of a deal around 5-7 years max. Our guest said that in reality, many venture deals are not closed out for up to 17 years in some cases but clearly many run longer than the usually cited 5-7 year periods. He felt longer term space projects would not prove to be that different from many other long duration VC project. Don’t miss this discussion.
Later in this segment, Brian gave examples of venture funds and their ROIs, then suggested what their ROI would look like with idea
in place. Please make note of the significant improvement he says would result with his financing alternative program. As you will hear, it was and would be impressive. He then said for the default insurance side of the transaction, the multiplier would result in 2-3 times their money. He explained why it was so important for the insurance side of the transaction to be profitable.
Listeners asked his several email questions, most wanting him to connect the dots of his idea to space financing and Mars. He provided us with an example of how his idea might play out. He suggested that the space billionaires such as Musk, Bezos and Branson would form a group to finance this venture and implement the idea. The financing company that he suggested they would contribute large sums of money to would then be used to finance the project(s) per his earlier explanation. Listen carefully to how he says this would work. Let us know what you think of it by posting your comments on the blog. Personally, I think it would be a hard sell for those three and others to put billions into a financing company to make an investment in a space project that they all agree with given they all seem to have their own agendas for what next to do in space.
Topics discussed prior to the close of the show included regulatory issues regarding both the government and the banking industry, the issue of credit default swaps, Brian’s outreach efforts to promote his concept and the returns on public project by way of comparison including the building of interstate highways and the Apollo program. Don’t miss Brian’s closing comments.
Please post your comments/questions on the TSS blog for this show. You can reach Dr. Brian Hanley through me.