IGNITER

Here’s my first crack at the Micro-Funds concept.  It’s related to the Social Venture Commons and Social Capital work I’ve been developing. They are all based on the new mode of organizing I see emerging.

*** I’ve also added an illustration of 3 alternative models that have emerged in recent conversations. They are all interesting in their own right and it may be more about using them in according to specific situations. All comments/suggestions/alternatives welcome. ***

Ping me directly if you are interested in learning more – and if you have comments on the presentation below please add them to this post.

*** SESSION WIKI NOW LIVE ***
Those who know me know that this is a persistent theme with me – and now provoked by @josephdee – maybe it’s time to take this into a more focused conversation with a few more folks.

Premise:

1. The way of the world is borked.
2. The web (among other things) is shifting the way we organize resources, ourselves and create new things (W)
3. From that (in part) is emerging a new mode of organizing where the organization itself (not just the product) is peer produced (PP0).
4. Design is the essential process of intentionally creating things (D)
5. ‘Un-borking’ our world means creating our future through W+PPO+D.

The conversation I’d like to have:

• is this premise (or something close to it) something that we really buy into?
• if so, what does it mean to put it in practice ourselves?
• how do we weave it into the practices of others?
• what are we (each individually and collectively) doing about it?

So I ask, what do you think about the premise, the conversation, and do you want to participate in this conversation (or maybe you are already having it)?

A couple of us have floated the idea of having a conversation at MaRS the morning of Dec. 11th. If you are interested – comment below or ping me directly.

*** Some other things that have come up in subsequent conversations around this – not sure yet how it will fit into the conversation but keep firing away.

• The role of mindset is fundamental
• ‘Spiritual’ development and the question of “what am I” has a potentially significant role
• My past work around ‘The Great Remix’ may lend to this too

I’d heard of TechStars before and never thought too much about it – ‘another incubator’ is how I filed it. Well one of my highlights from StartupEmpire was hearing David Cohen of TechStars. Half-way through it struck me… why don’t we do a TechStars for Social Ventures at Hollyhock.

The TechStars model is about an intense 3-month period for 10 ventures to gather, develop and launch their concepts, and gain support from venture veterans and each other. Hollyhock is a place for ‘non-virtual social networking’ and has hosted the social change and venture communities for over a decade. It’s a magical place and I think this would be an extraordinary experiment.

I also, through Twitter, heard that Jon Gosier of Appfrica (@appfrica) is working on TechStars in Uganda. There must be others thinking about doing this for social ventures/innovation. Seems like a no-brainer and the TechStars model is ‘open’. Anyone? Anyone?

Building on my previous posts about the Social Venture Commons here’s a draft overview of what’s been brewing. This venture is one part of my trio to support the ventures working from the new mode of organizing I see emerging. The two other pieces are the micro-funds (presentation coming soon) which is a modified version of early-stage venture/angel investing and a social capital learning project (in development for a trio of venture networks) based in part on the thinking here.

Ping me directly if you are interested in learning more – and if you have comments on the presentation below please add them to this post.

I recently received an update from Renewal on the development of their Renewal2 Investment Fund. In addition to hearing that the fundraising is going well in-spite of the financial crisis, I’m glad to learn that they have created an investment structure that makes it easier for foundations and others to invest across North America.

It’s an interesting time for foundations, and some like the W.K. Kellogg Foundation and Gates Foundation are making bold moves by setting up their own venture funds or indicating that they are moving toward spending down (vs. preserving endowments). I hope that some more foundations take these steps and look to investing in funds like Renewal2 to spur the different forms of innovation that are possible.

Perhaps these structures coupled with the change in financial tides might spark some more urgent and innovative investments among foundations. As history has now proven – they can and do perform better than the market.

From the Renewal2 update:

“We have three investment entities: a Canadian Limited Partnership, a U.S. Limited Partnership and a Canadian Trust.  The U.S. LP was set up to make it much easier for U.S. individuals to participate in Renewal2.  The Canadian Trust has been set up to allow Canadian foundations to invest. We believe Renewal2 is an interesting vehicle for mission related investing by foundations.  No such trust is necessary in the U.S. as U.S. tax laws, unlike Canadian tax laws, do not prevent foundations from investing directly in LPs.  We completed the trust documentation last week so now all of the legal structures are in place.”