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In the 21st century, social influence = capital (thread)
1/ The pace of this transformation is accelerating
2007: 50 Cent earns between $60m and $100m after the Coca-Cola Company acquires Vitamin Water
2007: 50 Cent earns between $60m and $100m after the Coca-Cola Company acquires Vitamin Water
2/ 2014: Apple acquires Dr Dre’s Beats brand for $3 billion in cash and stock
2019: @TheNotoriousMMA 's whiskey brand Proper Twelve generates $1 BILLION in retail sales (3.3 million bottles) in its first full year of operations.
4/ Meanwhile in China, Ruhnn, an influencer factory, raises $125m in IPO on @Nasdaq @ $600m valuation
5/ 2020: @shl , @gumroad founder, raises a $5 million VC fund with 1 tweet, a Notion memo and a zoom call with 1,800 participants (not a huge fund, but bear with me…)
6/ New Power is taking over from Old Power.
“New power models are enabled by peer coordination and the agency of the crowd.”
“New power models are enabled by peer coordination and the agency of the crowd.”
7/ “Old power works like a currency. It is held by few. Once gained, it is jealously guarded and the powerful have a substantial store of it to spend. It is closed, inaccessible, and leader-driven. It downloads, and it captures.”
8/ “New power operates differently, like a current. It is made by many. It is open, participatory, and peer-driven. It uploads, and it distributes. Like water or electricity, it’s most forceful when it surges. The goal with new power is not to hoard it but to channel it.”
@BrewDog , the fastest-growing beer brand in history (founded 2007, worth approx $2 billion), has a crowd (army) of over 50,000 shareholders. It has made many of them wealthy.
9/ Prediction for VC over next 20 years: unbundling and fragmentation, @AngelList’s rolling funds become increasingly influential, some of most successful GP’s are social media influencers backed by thousands of people. Platforms like @crowdcube also mature.
10/ The first billion dollar equity crowdfunding platform will emerge, as predicted by @kevin2kelly in “The Inevitable”.
Probably @angellist . @Naval be chillin’
Probably @angellist . @Naval be chillin’
11/ Long term potential: collective intelligence systems take over as LP’s finally realise they deliver superior returns.
(See "Superforecasters" by @PTetlock and "the wisdom of crowds" by @JamesSurowiecki )
(See "Superforecasters" by @PTetlock and "the wisdom of crowds" by @JamesSurowiecki )
12/ Sign up w/ @joinodin to participate in the new power VC economy in Europe. http://www.joinodin.com
13/
Essential reading:
https://hbr.org/2014/12/understanding-new-power
Superforecasters by @ptetlock
The wisdom of crowds by @jamessurowiecki
Essential reading:
https://hbr.org/2014/12/understanding-new-power
Superforecasters by @ptetlock
The wisdom of crowds by @jamessurowiecki
14/ Also, this from @BrewDogJames is good on same subject:
