Pods ecosystems can translate wealth from the old idea of paper currency to new kinds of digital values, monetizing things like retweets, likes & follows. Developing emotional and thought leadership currency will encourage smart money, or “in-it-to-win-it" long term curatorial investment strategies & curb “too big to fail" fiascos.
Responding to: Jeremiah Owyang
How to make a room go quiet? Yesterday, at my keynote at the Ouishare festival, I asserted (backed by data, of course) that the "1% own the Collaborative Economy".
The attached graph, shows the amount of VC money injected into the tech startups, indicating the true ownership of this "sharing, communal, social" economy.
This market, which prides itself on helping individuals and local communities get what they need from each other has accepted over $12B of funding from Venture Capitalists, some of the wealthiest people in the world.
In a few years, these investors need to retrieve their investment returns, as they need to return their money to their investors, the Limited Partners.
This means a "material event" such as an IPO or M&A, or recurring dividends paid back to the investors from the software startups.
This venture money was crucial to kick starting this movement, achieving global adoption and a war chest was needed to penetrate cities that resisted from entrenched institutions and legal complexities.
In the afternoon, we had a hearty debate on a panel about this, and a few solutions were teased out:
Here's the industry options:
-Accept this as a fact, just as we've accepted Facebook, Twitter, Linkedin are VC backed and now publicly traded companies.
-Build an open source, community-funded version, but face an uphill battle of competing against heavily-funded, accelerating startups.
-Devise a way for the community to purchase ownership from the investors, just as Etsy sold some pre-IPO shares to their creative community.
-Payout recurring dividends to investors, avoiding an IPO and intense market pressures to monetize.
-I'm open to ideas, leave a comment.
Why do investors need their money back when money itself is becoming a losing proposition?
Pods ecosystems (like this one for CorrectionsHospitality) represent wealth translation: from the old idea of paper currency, and its current digital equivalent to digital value.
Digital values are expressed in a variety of forms, not as mere dollars/pounds etc. “Likes” and “Follows” represent emotional and thought leadership currency, we simply haven’t invented their real world impact equivalents yet.
Imagine an affinity-based economic ecosystem running like a Sims City game, for instance. On #AVA2016’s #CampaignTrailRedesign, we’ve outlined how to create economic development opportunities around common themes (both placed-based and issue-based or conceptual) So, a #DestinationEngineering pods ecosystem would connect physical places where #SocialLab engineering projects are happening. Within those #SocialLabs, we’ll identify project objectives, then connect relevant government grants, corporate interests, investment dollars etc. Successful projects, and the thought leadership behind them, will trend. Many #SocialLabs will serve as templates for other locations.
A series of #DestinationEngineering places will now become an economic organism. Instead of investing in individual companies that may be under short-term pressures to demonstrate profitability, investors can float their financial resources in the #DestinationEngineering ecosystem that includes for profit entities, nonprofit pods (#stir, #topstitch, #makerpad etc.) as well as educational resources. Investment in schools no longer becomes a disconnected “nice to have” but an integral part of the ecosystem design. Investors flowing money into the ecosystem are incentivized to make sure that the connected nonprofits and educational facilities are available and running smoothly.
In a mind/body metaphor, this is the equivalent to investing in muscle. When athletes train, they are storing nutrition, or energetic potential, within their bodies. It's easy to "get in the game" when this work has been done vs. storing money the way we currently do, as pantry goods. We're several steps away from getting in the best games this way. Affinity groups dictate whether we're storing energy as dancers or football players. A player isn't always using their full athletic potential.
Within any economic ecosystem (#DestinationEngineering, #DestinationCorrections, #DestinationMusic) one’s “wallet” would be filled with a) coins, representing real world dollar/other current currency investments b) natural resources c) human resources in the forms of thought leadership and emotional currency (our stored athletic potential). A “smart money” investor would be contributing $ and thought leadership to an ecosystem and his/her wallet would expand. Coin-only investors would simply be floating currency within a system. Thought-leaders (think major players in blogosphere) with lots of ideas & “likes” from the community would have TL influence. The community, because they are specialized, can award emotional currency for “great science” in the form of “likes” thereby funding innovation. Trended thought leaders’ opinions will carry more weight. Top thought leaders influence decisions across the whole ecosystem and become representatives for regional, national and international government.
A start-up would then be pitching influence values vs. mere financial return. Instead of a % stake in the new company expressed in mere monetary terms, the read would be % influence (a.k.a. power, which is what monetary currency really represents) broken down into relevant categories. So an investor whose heart is really into great engineering will be able to translate wealth into emotional currency. That currency has influence within the ecosystem. Every entity would have a, b, & c resources, and would be incentivized to keep their equations in balance, in the form of a trust mark. We all know that money influences politics, but our current systems pretend that this isn’t the case. By creating trust marks for commercial and nonprofit entities, we’ll see the % of influence their monetary resource have vs. their thought leadership. Entities kicking ass on thought leadership %s will attract the monetary resources they need. Money will flow to them. That way, we’ll see the balance (or necessary tension) between $ and influence. Citizens will “like” thought leadership contributions from entities demonstrating balanced percentages that benefit the ecosystem. You could enter a system buying thought or emotional leadership coin for money, but it wouldn’t maintain value without “representin’ ” That is to say, you could buy-in at a certain level, but you’d have to keep producing thought or emotional leadership for it to maintain its value. Entities who start showing they’re monetary coin driven only (which is fine: no judgment implied there) will be perceived as such by the citizens in the ecosystem. But if money-making machines begin to harm the system’s mojo, the ecosystem can monitor emotional debts and take appropriate action.
Healthy Economic Ecosystems mimic Healthy Mind/Body
$ = monetary resources (breath & nutriment entering bloodstream)
See Ava's gangsta story relating to personal compensation. As individual cells specialize to form "affinity groups" such as lungs, brain, stomach, so our individual compensation (or "get") micro models demonstrate how compensation might work with the larger body.
<3 = emotional currency (heart, spirit- aka brand equity) Good mojo/bad mojo most def a “thing” as it impacts the health of the whole system. #WishingWell principles applied to economic ecosystem. #Sanctuary #CampaignTrailRedesign & #PinupsPresidential formats to explore & define these value systems
^^^ = infrastructure & natural resources (body) houses, buildings, infrastructure, land, water = natural/physical resources
?- lightbulb = thought leadership (mind) “We’re lacking lightbulbs here, let’s plant a #DestinationEducation…” #Sanctuary #CampaignTrailRedesign & #PinupsPresidential formats to explore & define these value systems