This is a supplement to an article published on Medium as well as on DarwianInterlude. This page is under continual revision. It’s where I make note as they occur to me.
- Parallels
- The Makers
- Like open source – Motivation is to do what we love in a way that expand possibilities for both ourselves and the wider community.
- Like open source – Work is a source of meaning and a vehicle for our contribution to the wider society.
- Like open source – Businesses start dedicated to our customers and vision and not to pumping something up and exiting.
- Like open source – You should be capable of a stable release before getting too full of yourself.
- The Community
- Like open source – projects often begin as a natural outgrowth of the efforts of a community of interest.
- Like open source – Makers are supported emotionally and financially to various degrees by the wider community.
- Like open source – There’s a diversity of motivation around some common visions. Not all squashed down into a monetization or growth strategy. Unique visions of high quality endeavors.
- In my biz gear constellates out of community. 60s backpacking. Appalachin Trail. The barrier between fan and pro is permeable. We want to stay connected to our passion and make a living.
- Like open source – The product can scaffold up through this direct connection to community.
- The Makers
- The Change
- Kickstarter
- Projects and premiums – Peak Designs and all those damn hammocks as eg.
- Wefunder.
- Premiums remain but can also offer equity/debt/profit-sharing. Synergy of premiums.
- Facilitates further evolution in a direction that supports both the Makers and the wider Community.
- Part of a recognition of the wider range of motivations for economic activity. Another parallel = selfish gene, classical economics vs Sober & Wilson, Sante Fe Institute, Behavioral Economics. This has resulted in B-Corps, community capital programs, etc.
- Removes the barrier to entry. Minimize risk to individual investors. Premiums as part of ROI and smaller amounts. (Up to 500 now, raising that is key.)
Lower cost of allows a greater range of motivations. 50k 5k .5k - Intensify the community/maker connection. Extends companies as natural outgrowth of community.
- Removes choke point where diversity of interests are squashed down to a narrow stock market / exit strategy.
- Currently funding suffers from mono-culture in models.
- Kickstarter
- Alignment of interest.
- Should go both ways – value returned from equity. To align interests there should be significant equity position in same class of stock by founders. Common interest in a method to get value from the efforts of founders and the cash of investors. (SlingFin as example.)
- Challenge – as in all small and/or privately held enterprises: liquidity when needed
- Process has to acquire, absorb, transform and then secrete capital
Implications of wider range of investment motivations? - Owning what you do vs exit = transfer of interest vs diffusion into uninterested capital. There are some promising experiments.
- Process has to acquire, absorb, transform and then secrete capital
