time and capital allocation
I want to share a framework for thought that helps me understand why some companies are more successful than others and as a way to think about things to do or not .
Time and energy are the most important resources in the world.
Theory
- People want to get the same things : food, shelter , education , kids , fun & make money with their skill ..
- Technology help invent ways to get this things cheaper and better
- All successful companies in the world came up with ways to make the things people want cheaper , quicker and faster or help them make more money with their time.
- People gain wealth when 1. They find people new ways to make more money on their time and energy or 2. Give them something they want for less money .
- where massive groups of people allocate their time : social networks(to connect with friends and get entertainment ) , their jobs(to make money) — in these categories winners are the social networks and the super users that are on top of it .
- where massive groups of people allocate money : capital allocators ( investment firms and funds , expensive products (house and a car) and basics (food ) -in these categories tech winners are jeff besos and shopify and companies like robinhood.
The ones who help people to allocate time best : platforms that help people to make more money from their work .
The once who allocate capital the best are:
the ones that help people make more money from their business — the first version of that was e-commerce and the second version will empower influencers to sell virtual or physical personal goods or get value as an entity(via an ipo or a personal tokens) .
Potential opportunities :
There is a whole class of people on the internet which create a lot of value and is not making money .\ they are not allocating their time the best way !
Those people are :
Influencers, entertainers, and artists: streamers, artists , gamers, musicians and anyone that attracts the attention of other people .
Open-source tool developers — they develop tools such as compilers , encryption tools , new languages, and other things that other programmers use to make their things.
Opportunities i care about : invest into new business models that help creators own more of what they create .
Because I’m more attracted to crypto and to finance I will only mention the businesses that I’m interested which include crypto in various ways or finance.
For the first category ( influencers ) , the two ways i see to enable them better time allocations are :
- New Ecommerce personal brand sites: Sell new , digital (or physical things ) — (zora)- enable the artist to sell a digital item that gives unique access and benefits to the artist, for the artists its a way to make more money and for the community its a more engaging way to interact.
- Investment bank for influencers: Sell a piece of their future using crypto — community\ personal tokens — this is crypto tokens that represent the influencers future profits . platforms such as roll or rally help creators to issue and sell this tokens.
- A traditional market, influencer focused investment banks: Sell a piece of their future using the traditional markets \aka — influencers to ipo themselves.
summarize: I think time and money are the same, money is time in a package, and the best way to help someone is to help him allocate his time and money more efficiently. the best way I found of how to do is to enable a business or a person to make more money from the same set of resources.