Banners can be thought of as financial instruments, in particular an investment agreement.

In the world we live in, an investment agreement is a legal document that specifies a financial return or ownership of a collateral. In the tech space, this collateral is most often a piece of the business that’s taking the investment. This means that an investment is made based on the future value of the business-as-collateral. The business may be worth nothing now, but it may be worth of lot in the future (e.g., the canonical example is Andy Bechtolsheim’s very early investment in Google).

Banners can be the equivalent Radical arrangement having the wealth generated by an existing company fund a future company. The yielding value of an existing company is used as the basis of ownership, instead of accumulated capital.

Some, though not necessarily all, co-owners support it by committing some or all of their RADs to it. After 26 months the fund reaches $5M. New Radical investors would shorten the time for the fund to be ready. This allows any co-owner to invest the future of the RADs yield. Others won’t and some can’t. New co-owners may join the BANNERs right away, others will wait a while, and still others will sit it out.

Co-owners can use Banners to make any other investment.

In the end, ownership of the building is calculated as the percentage of contribution to the Banner. If you contributed twice as much as I did, you own twice as much as I do.