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Google’s former head of enterprise wants to help promising graduates fulfill their professional dreams in exchange for some of their future income. Is it mad or is it brilliant?

Upstart is a new funding platform through which accredited investors can back best college graduates and help them make their way in the world-whatever that way turns out to be.

Dave Girouard, mastermind of Upstart, left his post as Google’s head of enterprise to build this new funding platform. Girouard says that too many gifted college graduates take boring jobs only to pay for student debts instead of following their dreams.

“My career was heavily influenced for the first six or seven years by student debt,” says Girouard. Girouard himself could go to Apple for better job and better salary only when his students debts were almost cleared.

This gave him the idea to build Upstart.

Instead of funding good ideas, Upstart focuses on people.  The investors provide mentoring and investment in $1,000 increments to recent college promising grads. The company claims it can predict the earning potential of graduates by using an algorithm that takes into account grades, salary statistics, and other factors.

These grads agree to hand over a portion of their future income for at least the next 10 years in exchange for funding.

To apply for Upstart funding, a recipient posts a profile on the Upstart site, where the person’s expected income for the next decade is calculated. A recipient can then ask for funding up to a maximum of 7% of the projected future income.

The sum the upstarts pay out to their investors depends on their income tax filings and is covered by the amount of money they received plus an annual rate of return of 14.9%. In years during which the recipient makes less than $30,000, the person won’t have to make payments, but an extra year will be added to the contract-up to a maximum of 15 years total.

The recipients also have an option to buy out the contract early.

Although tempting, the Upstart concept also sounds a little silly on several levels.

Predicting someone’s future success is a gamble, no matter what kinds of algorithms are used to calculate this. Start-ups fail every day for a number of reasons and why would these young people burden themselves additionally with a decade of debt?

On the other hand, because the Upstart takes only a percentage of profit over $30,000, it is way better than a standard concept of bank loan, demanding payments regardless of a person’s circumstances.

Also, the funding and mentoring provided by the Upstart concept is a huge advantage for young and promising graduates – an accredited investor in Upstart is required to have either a net worth over $1 million or income that has exceeded $200,000 for the past two years to participate.

We must remember that Girouard is a man who knows about money and success. He developed Google Apps and turned it into a $1 billion a year business.

Upstart is still in a limited pilot and is working with 2010 to 2013 graduates from all fields – not just tech stars – from several institutions, including Arizona State University, Dartmouth College, Rhode Island School of Design, the University of Michigan, and the University of Washington.