Investment 1.0 vs Capitalism 2.0 | Refinancing
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Investment 1.0 vs Capitalism 2.0

March 16th, 2009

Investment 1.0 vs Capitalism 2.0

One of the impediments to Capitalism 2.0, as we’ve discussed quite a bit in the past, is Investment 1.0. Here’s an example.

invoice Gurley is a very smart guy who has written some ground-breaking stuff. I used to read it obsessively while I was doing my MBA. So I was (super) lamed out to read this.

Today’s economy needs deep, foundational reinvention. Venture investors – especially the top tier – should be focusing on vastly more significant and powerful ideas than “monetizing” social nets with virtual designer sunglasses.

Think about what Gurley (and the beancounters he cites) are saying for a second. It’s not even a new business old model, a business model innovation: it’s just the same old lame retail business model in a digital disguise.

We can’t reinvent the economy without, well, investing in reinventing the economy. So here’s a distinction you might want to draw. VC 1.0: “monetizing”, aka selling the same old mass-produced junk to tuned-out “consumers”. VC 2.0: seeding better economies, industries, and markets for a 21st century bereft of value creation, aka radical structural transformation.


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