More Discussions for this daf
1. Heter Iska 2. Cash or credit 3. Cash or tax
4. 50-50 split 5. Bava Metzia 068: Lending to an apostate 6. Ribbis In Banking
7. Rav Ashi and Ameimar 8. אמר רב נחמן הלכה כרבי יהודה והלכה וכו'
DAF DISCUSSIONS - BAVA METZIA 68

Barry Epstein asked:

Must an iska be 50-50? If the Jewish venture capitalist takes 60%, is this interest? This is done all the time!

Barry Epstein, Dallas, USA

The Kollel replies:

Preventing Ribis in an Iska can be done two ways: Either by making an uneven split favoring the trader (larger portion of the profit, or smaller portion of the loss), or by paying the trader a salary.

However, all this is necessary only when there is shared liability (e.g. if the investor puts in $100 and if the business goes bust the trader will be liable $50). However, in the standard case of the venture capitalist where the business accepts no liability (not even moral!), any deal is acceptable.

D. Zupnik