The capital requirements for space settlement are colossal, at least on the order of several trillion dollars. To this end, I propose creation of a venture bank, able to multiply the capital of a venture capital firm by up to 47 times, without requiring access to the Federal Reserve or other central bank apart from settlement. This concept rests on insuring loans to expand Tier 1 and 2 capital. Profitability depends on overall portfolio performance, availability of default insurance notes, cost of default insurance, and the multiple of original capital (MOC) adopted by the venture bank. If the form that uses interbank funds is used, then it also depends on the interbank funds rates. I propose a new derivative financial instrument, the Default Insurance Note (DIN), to insure loans to venture investments. A DIN is similar to a credit default swap (CDS) but with a host of unique features. The features and operation of these new derivative instruments are outlined along with audit requirements. This instrument would be traded on open-outcry exchanges with special rules to ensure orderly operation of the market. It is the creation of public markets for DINs that makes possible the use of public market pricing to indirectly establish a market capitalization for the underlying venture-bank investment, which is the key to achieving regulatory acceptance of the fully-insured version of this proposal. That fully-insured version insulates the venture-bank from losses in most situations, and multiplies profitability quite dramatically . There are risks to this method. It also gives up quite a bit of the company. However, this system could take roughly 70 billion dollars and create at least 3 trillion dollars out of it, leaving approximately 280 billion dollars of headroom. This is attainable with the pooled resources of a relative few wealthy individuals .
 I propose creation of a venture bank, able to multiply the capital of a venture capital firm by up to 47 times, without requiring access to the Federal Reserve or other central bank apart from settlement. This concept rests on insuring loans to expand Tier 1 and 2 capital. Profitability depends on overall portfolio performance, availability of default insurance notes, cost of default insurance, and the multiple of original capital (MOC) adopted by the venture bank. If the form that uses interbank funds is used, then it also depends on the interbank funds rates. I propose a new derivative financial instrument, the Default Insurance Note (DIN), to insure loans to venture investments. A DIN is similar to a credit default swap (CDS) but with a host of unique features. The features and operation of these new derivative instruments are outlined along with audit requirements. This instrument would be traded on open-outcry exchanges with special rules to ensure orderly operation of the market. It is the creation of public markets for DINs that makes possible the use of public market pricing to indirectly establish a market capitalization for the underlying venture-bank investment, which is the key to achieving regulatory acceptance of the fully-insured version of this proposal. That fully-insured version insulates the venture-bank from losses in most situations, and multiplies profitability quite dramatically in all scenarios. Returns above 10 are attainable. I show that both where the DIN is a minor fraction of investment, and where the DIN insures 100\% of invested funds for the duration, that the DIN underwriting business is either quite profitable or there are small losses in the worst cases .
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The capital requirements for space settlement are colossal, at least on the order of several trillion dollars. To this end,
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. There are risks to this method. It also gives up quite a bit of the company. However, this system could take roughly 70 billion dollars and create at least 3 trillion dollars out of it, leaving approximately 280 billion dollars of headroom. This is attainable with the pooled resources of a relative few wealthy individuals
in all scenarios. Returns above 10 are attainable. I show that both where the DIN is a minor fraction of investment, and where the DIN insures 100\% of invested funds for the duration, that the DIN underwriting business is either quite profitable or there are small losses in the worst cases