Kavai Conglomerate Group: David Chan

The Street has an article about David Chan, whose in-world company Kavai Conglomerate Group began offering Second Life bonds last week.

From The Street:

"Chan says he sold 250,000 Linden, or nearly $1,000, in bonds last week.

"I began to look into the possibility of either establishing a bank, go public or issue bonds," Chan says. "The first two choices were deemed too complex, and I went with issuing bonds to enable my company to expand further."

"Before my bonds were issued to private investors, I decided to expand that offer to the public as I saw the Second Life economy began to mature," says Chan. "We would love to turn this financial Wild West into a viable market, and hopefully we will be the first company to seize this capital market."

"The bonds are not tradeable yet, but could be as our technology level is increased to support that infrastructure," Chan explains.

The bonds sold last week range in duration from short three-month commercial papers to two-year bonds; the yields also range accordingly, from 15% to almost 21% annually."

Second Life Bonds

Investment company Tristar Financial is going to offer bonds in Second Life.

SLNN:

"Kavai Onizuka, Chairman of Kavai Conglomerate Group, said that the timing is right to offer a more advanced way for people to invest in SL's bigger projects. "We feel that right now is a strategic time for SL's economic markets to mature to a more refined level– to support the development of more complicated financial offers such as stocks, banking, and lending," he said.

Although several other banks have established themselves in SL with daily dividends, Tristar is hoping to pioneer the bond market. It will be the first of the banking institutes to claim that 100 percent of the investments will remain in SL. "Our business philosophy encourages us to look at opportunities for the long-term through actual development in the local economy," Onizuka said. Bonds carry a greater time commitment than the bank deposits that allow for withdrawal at anytime. He said that the longer time commitment would allow his company to better commit to SL projects."