My argument is that better much better does not necessarily cost the earth.

Its is about a new literacy and logic in how we make stuff. This is a key part of the No Straight Lines Story.

Some interesting key points highlighted over at the p2p Foundation

1. Designed and manufactured a 4-passenger street-legal car that gets 100 mpg
2. The car was constructed using off-the-shelf parts
3. The car is entirely modular in design
4. They innovated a new process for carbon-fiber body construction that costs 1/360th the traditional process
5. You can pre-order cars now for less than $29,000
6. This is not just a one-off prototype. Currently they are manufacturing one car per week (yes, that’s the low volume manufacturing retail price). They are targeting a future price of under $20,000.
7. With no capital investment
8. Though accept donations
9. Everything is done through volunteers

Also read:

• The No Straight Lines challenge: be realistic imagine the impossible
• 6 challenges for a non-linear world
• The NEXT Silicon Valley is not a place it’s a platform
• LEGO CUUSOO – the WHAT’S NEXT for business in a non-linear world
• Patients Know Best: a new literacy for healthcare

No Straight Lines, argues that we have reached the nadir of the adaptive range of our industrialised world. Now faced with an unsustainable trilemma of social, organisational and economic complexity, we have entered an era in which the rules we have previously organised our lives around no longer apply. Leaving us with both a design problem and a design challenge which we must urgently solve. By describing an entirely new way for true social, economic and organisational innovation to happen, No Straight Lines presents a revolutionary logic and an inspiring plea for a more human-centric world.

So I was excited to hear of the Startup Genome Report that will be of real value to entrepreneurs as they navigate their way through the ups and downs of success. So what’s it all about?

The Startup Genome is an initiative of blackbox, a seed accelerator co-founded by techVenture and other organizations that have a track record of working with 100+ startups, including 15 exits (such as Bebo, Tapulous & Lala),

Now Blackbox will be releasing the first comprehensive benchmarking application for startups based on the Startup Genome framework.

Three months ago they released the first Startup Genome Report and it went viral throughout the startup ecosystem. To date it’s been covered in more than 150 publications in more than 15 languages, and the report has been downloaded more than 15,000 times. More than 50 Universities and accelerators have adopted the report into their curriculum. The report was a 67-page in depth analysis on what makes startups successful created in collaboration with researchers from Stanford and Berkeley and thought leaders like Steve Blank, Alex Osterwalder and Janice Fraser. Over the last three months the dataset of high growth technology startups has grown to more than 3200 and it is now the largest rich dataset on technology startups. The Startup Genome Compass now allows every founder to receive a personalized monthly report based on the Genome research.

The key problem that this new application, the Startup Genome Compass, is tackling is premature scaling. The Startup Genome Compass is a benchmarking tool that automatically classifies a startup by type and stage, generates a personalized Startup Genome Report and diagnoses them for premature scaling.

The Genome project hopes to help entrepreneurs from scaling prematurely by supporting their decision making with data about the expected values for the core metrics across Customer, Product, Team, Business Model and Financials dimensions.

Based on analysis of about 3200 high growth internet startups 94% of these fail, and premature scaling is responsible for about 74% of these failures.

More SMLXL posts on innovation

These are:

• New visual outlook and improved usability
• It is free to create and publish investor and start-up profile
• Members can invest 100% of the micro-investment membership fee, you can buy $100 membership and invest that $100
• Grow VC iPhone app.

Though I think there is a bigger story to share. And that is of the idea that GrowVC represents an evolution how start-ups are funded. There is a growing recognition of a dysfunctionality within our money supply system, and that applies as much to venture financing as it does to banking.

But money supply cannot be separated from the trilemma of our current age – which is, when faced with increasing complexity we face three interlinked questions, [1] organisational, [2] social [3] economic. How can we organise better? How can we make for a fairer world? What does economic production and commercial markets look like when faced with institutional failure? The fact is, when faced with this reality people are learning to get what they need from each other.

Communities of interest are a new organisational model

At GrowVC we asked ourselves the following questions, who has the right to invest? Who has the right to be an entrepreneur? Where does knowledge reside in what to invest in and what not? What is risk and what is not? We came to the view that the Human Operating System we are currently co-creating in which networked communications becomes the connective tissue by which we can re-organise and create and co-create in entirely different ways could equally be applied to investing. We believed that everyone could be and should be investing in start-ups. And why not?

The failure of free market ideology

Banks and banking seem very high risk to me at the moment, pension funds are unsustainable, yet we spend extraordinary sums of money persuading people to play the lottery every week, and tell the ordinary Joe and Josephine that investing is not for them? Why? If we reflect on the banking crisis that nearly was a global catastrophe of even more epic proportions, we understand the dysfunctional nature of banks and banking. In the light of some of the greatest austerity cuts in the UK it is clear that ‘too big to fail’ has failed. People’s livelihoods, retirement funds have been wiped out – yet the finance and banking industries are still consumed by their own mythology – a form of myopia which prevents its from comprehending its own excess. And of course it comes down to power – who has it and who does not. I am not saying “away with the banks”, but what I am saying there exists other highly viable models, which should become part of the financial eco-system.

People embrace what they create, we know that identity, belonging and accountability are forged when we participate in the creation and building of things. My belief is that the idea of democratising investing could offer real long term value for society. Better wealth distribution, an acceleration and increase in the number of companies funded, a different type of engagement with investors and shareholders that could become the checks and balances that our society so desperately needs (News of the World and News International or Lehman Brothers spring to mind). And a new organisational model – lighter, sustainable, adaptive. The default setting  is human, inclusive, participatory, open. Representative of a new moral economy. And, Maybe you are an investor, an entrepreneur and a worker all at the same time.

So my advice is become an entrepreneur, become an investor, seek alternative models which are relevant for the world we live in today. As the artist Wassily Kandinsky once said, “every work of art is a child of its time.” And GrowVC is a child of its time.

Further reading: Democratising Financial Capital, “Crowd-funding will never catch on” investment trainee aged 46.

The presentation dealt with this idea: That mobile communications does not have to be a tactical endeavor, it can be a deep strategic one enabling companies to run leaner, to reach audiences in new and novel ways, to redefine a company organizationally, and create new markets with new revenues. In ‘creating assets and access in the intention economy’ I challenged our thinking in how mobile communications plays the key role in this rapidly evolving story.

Existing models of crowd behaviour  treat moving masses of humanity as though they were fluids. This works, up to a point. But it often fails to predict the changes that happen as a crowd’s density increases and its movement becomes chaotic.

Apparently marching soldiers will automatically break step on a suspension bridge – and over the last 5 years or so I have been fascinated by all sorts of participatory cultures – here is a selection of posts that explores such a fascinating and increasingly important area of investigation

Which business, which industry, which NGO or political organization, democratic or otherwise has not been touched by the impact of our most recent communications revolution? In a breath it seems, businesses defined by their socialness, community, and peer to peer interactivity have erupted in complete violation of the orthodoxy of traditional business, and how that business is made: controlled access to stuff, to information. This is the Gestalt Switch –  today people are using communication technologies to get what they want and need from each other rather than through existing organisations and institutions. Why? Because those institutions have been recognised as being unable to deliver on their promise to society. Because they abuse their position of power, because they lose sight of why they were there in the first place.

So why is access to financial capital any different? In No Straight Lines: making sense of a non-linear world, I make the case and argument that as our world has become increasingly unfair, to the point whereby that unfairness is highly corrosive, people will take action, political action, dramatic action, action with consequences. It is no accident that today, communications tools are being wielded as powerful agents of political change. As much as everything ‘digital’ has affected our world, the point is we are in a social revolution not a technological one. And, as much as we have seen profound change in certain areas of society, the owners of monetary power (banks, venture capital, financing) have seemingly been unaffected by the disruptive energy of a non-linear world until now, other than by their own doing. But what the banking crisis demonstrated is how dysfunctional finance and money markets have become, not only in venture funding and lending but in pensions, the managers of which know they will never be able to properly pay back to society.

So at either end of people’ lives; the creation of jobs and then a happy retirement, the system which should support that has failed. Its not failing, its failed. So where do the new entrepreneurial companies that create the new jobs come from? How will we finance our retirement? We need novel ways to make this all happen.

In the same way that Martin Luther used Gutenberg’s printing press to reform the church, organisations such as GrowVC, or Profounder or Kiva or Zopa, or Kickstarter, to name but a few, are also part of this challenge to financial hierarchies and their positions of power that now serve themselves rather than society at large. And this process is starting to accelerate, (see the Startup Exemption Petition)

Disruption does not ask permission

So disruption does not ask permission, and it never comes from the centre, the future of investing and the kickstarting of innovation requires radical new ways of funding and this will have a significant impact on society. This innovation will flatten  powerhouses of financial capital and if the idea proves as exciting as the ideas explored and brought to life in the writings and pamphlets that led to the French Revolution, then that idea will spread. As Tony Judt wrote in, Ill Fares the Land, (review)

By the time the revolution broke out, this new language of politics was in place, and in so doing discredited everything that had gone before it.

And once you have stormed the Bastille, you don’t go back to your day job. Who is an entrepreneur? Who is an investor? Who has the right to be either? Such perspectives are as skewed as the myopia of those that whinge about professionals and amateurs, and how the internet has destroyed culture. The question to that is who owns culture and who makes it? What we are seeing is a decoupling from the belief systems that have defined our world for generations.

In this process of the democratisation of venture funding, and the creation of a new innovation eco-system (to accelerate deal flow, that creates more companies and that creates more jobs), it has been reported back to me that some American’s believe this could be the re-invention of the American Dream. And Ross Dawson suggests, that a significant shift in capitalism could be coming. As head of vision at Grow Venture Community (GrowVC), I have watched these developments with great interest. I think, in the same way that micro loans work in many countries, rather than pointing to such financing models as ‘only for the really poor’, there is a more fundamental dynamic at work here, that participatory human systems when connected by the connective tissue of communications media can do some extraordinary things. It also I think breaks down the false barriers between who can and who cannot engage in wealth and value creation. This false distinction has corrupted many in their greed, consequently hurting society per se. As John Kay wrote, “Capitalists, are capitalism’s worst enemy – and particularly the market fundamentalist tendency which has been in the ascendant for the last 20 years”. And yet many in the finance and banking world cannot accept even though they were bailed out by states around the world paying millions in bonus’s is fair. In the same way Ann-Marie suggested the starving in the streets of Paris ‘eat cake’, the financial institutions has become detached from understanding their role in the wider society (read here for a selection of posts that explores these issues). So change is gonna come,

Ross believes,

While we supposedly live in a capitalist society, the potential is for new and more open structures to create far better use of capital than we have today. A more fluid form capitalism could transform business and how individuals create value.

The Wall Street Journal,

Federal securities regulators are weighing demands to make it easier for fast-growing companies to use social networks such as Facebook and Twitter to raise money by tapping thousands of investors for very small amounts of shares. The Securities and Exchange Commission is looking at adapting its rules to encourage Internet-age techniques for small companies raising capital. The issue is part of a wider review by the agency into whether to ease decades-old constraints on share issues by closely held companies.

The use of “crowd-funding” techniques has spread in recent years from artists looking to fund creative works to entrepreneurs trying to expand their firms. In a typical example, a company looking to raise $100,000 would use an Internet site to invite investors to buy as much as $100 of shares each.

If all goes well, small companies can raise cash relatively cheaply, while investors get a stake in an innovative business with limited downside risk. The SEC is now considering calls to relax its rules to make it easier for companies to use crowd-funding without having to undergo the full panoply of disclosure and other legal requirements required by the securities laws for share issues.

My presentation will focus on: Entrepreneurship, innovation and the future of the European economy. And I will be making two central points [1] we need to think differently about innovation and the businesses we are trying to create, this requires what I call a non-linear approach, which requires us to creatively design innovative businesses in very different ways. Being literate in tools, software, eco-systems, platforms, processes, legal frameworks, understanding human motivation at a deep social level, for example, are all part of this way of thinking and designing. Here are a couple of presentations that explore this theme (mobile and institutions), (designing for innovation in a non-linear world: presentation 1 – presentation 2).

[2] Creating innovation eco-systems at a national and European wide level is also central to deciding whether we will compete successfully or not. Something which I argue we currently do not do well. This is not something that we can afford to pay lip service to, creating such an eco-system requires serious effort and cooperation.

The event has been convened, by the Hellenic Ministry of Foreign Affairs, and the Ministry of Regional Development and Competitiveness.

(Download 40-47_Alan Moore)

The society and the economy of No Straight Lines