Preamble
Just a quick note to acknowledge the existential protests taking place in the US. I was actually stuck with what to write, until this terrific intro to a newsletter I subscribe to popped into my inbox:
Not much to say this week.
That is a lie, there is aĀ lotĀ to say this week, but it should not be coming from me. It should not be coming from certain individuals we have been led to believe, or have convinced ourselves, will give us all the thoughts and answers that we will need to function in society and brave any development that may come our way.
There is a whole lot that needs to be read, watched, heard, and discussed, and it will all have to come down to us. Us meaning an individual reader, a classroom, a friend group, a family, a discord chat; aĀ community. Community will be the remedy to 2020, a remedy to our lost discourse, our corrupt leaders and protectors, our tribal fears of the Other.
Change requires action, action requires information, information requires data, data comes from listening, and listening is an action.Ā
I respectfully defer my intro to the wonderful author over at Varasi Academica - Jeeves Reads #14.
Also, hereās an excellent conversation regarding the systemic issues facing the nation with Dean Emeritus of NYU, Peter Henry and Prof Scott Galloway on a recent podcast.
Wealth & Opportunity Inequality
Just a reminder of WHY I started this newsletter in the first place, mostly for my own sake, is the juxtaposition of this weekās record stock market highs and an unemployment rate of 13.9% being celebrated as victory. The protests in the streets, in my reckoning, are just as much about economic oppression as they are about Black Lives Matter and police brutality.
Some sobering stats since March of this year:
Billionaires have increased their wealth by $565bn
The top 10% wealthiest households own 84% of all equities
42 million Americans are out of work
The injection of trillions of hastily-printed dollars into the system have mostly benefited those participating in the markets; corporations, wealthy individuals, white-collar, remote-capable workers, congressmen. I could go on but I wonāt.
We Are CO3 was launched to create conversation and to share best-practices around the new business models weāll need Post-Covid. Business models that help reduce the wealth and opportunity inequality gap, that sit between for-profit corporations and non-profit organizations. I guess Iāll add Post-Protest to the letter.
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Okay, back to our regularly scheduled programming.
Conscious Capitalism - a Higher Purpose
Generally speaking, my goal with this newsletter is to highlight startups creating new business models that have purpose beyond monetization. We all know money makes the world go round, so itās an almost futile endeavour somewhat built around circular-logic. That said, itās still a worthwhile pursuit, at least for me personally.
My work also results in my digging deeper into the origins of Social Good and capitalism. So, if youāre so inclined, hereās a quick three-minute read going back a few years that sheds a little more light into the growth of Conscious Capitalism.
The truth is that heroic, Conscious Capitalism is grounded in four unshakeable tenets: Higher Purpose, Stakeholder Integration, Conscious Leadership, and Conscious Culture.Ā
Why Consciousness Is the Key to Unlocking Capitalismās Greatest Potential by Geoff Campbell and Aleksandra Corwin
Reimagining Capitalism in a World on Fire
Harvard Professor Rebecca Henderson, released her book on rethinking the current economic system and suggests pathways to creating a more moral and ethical foundation. All in all a great read, but I must admit, much of the concepts are above my paygrade.
She debunks the worldview that the only purpose of business is to make money and maximize shareholder value. She shows that we have failed to reimagine capitalism so that it is not only an engine of prosperity but also a system that is in harmony with environmental realities, striving for social justice and the demands of truly democratic institutions.
And in case you were wondering if the author is worth reading, just remember sheās the McArthur University Professor at Harvard University (the highest honor that can be awarded to a faculty member), where she teaches the acclaimed course on āReimagining Capitalism.āĀ Link to Reimagining Capitalism in a World on Fire. So yeah.
Unicorns v Zebras
Let me introduce you to Zebras Unite. Iāll write more about them in an upcoming newsletter (and podcast), but until then just add them to your radar.
Incidentally, theyāre mentioned in a post this week from our good friends at Built in LA. TL;DR while not against a āgrowth at all costsā strategy as much of the tech world seems to be, Zebras believe there are alternative business models.
Build Something Better
Hereās my weekly spotlight on a startup/organization building something better and creating the new kind of business model Iām always going on about šš½.
Lemonade Insurance is pushing (maybe just nudging for now) the insurance industry to do better. Wondering how many Coventure Guiding Principles (see original newsletter May 31) are present in their business model? Letās break it down and find out:
1 - Making it Easy for Users to Engage - their tagline is āInstant everything. Great prices. Big heart.ā and their testimonials, both from signing-up and the claims side seem to suggest simplified processes and speed of service. So āļø
2 - Providing Radical Transparency and Making it Local - they actually have a great section on their website called The Lemonade Giveback showcasing all the data, dollars, percentages and impact that they generate. Great transparency - however, slightly misses the mark on keeping it local. But Iāll give them a āļø
3 - Social Good is a part of the DNA - Lemonade was built from scratch with Social Good in their mission. So a major āļø. This is from their footer:
Lemonade Inc. is a Public Benefit Corporation and certified B-Corp. Social impact is part of our legal mission and business model - not just marketing fluff.
4 - Integrating a Social Impact Engine - this guiding principle was always meant to suggest a loyalty program that gamifies or offers network effects to users. While a Social Good Scorecard would be that sort of engine, Iām not seeing anything on Lemonadeās offering that would meet this principle, at this point. So no check-mark here.
5 - Giving to Impactful Organizations - according to their Giveback page, Lemonade is continuing to direct the money from unpaid claims to their chosen charity partners. So another āļø
In summary, if I were going to start a Social Good Scorecard based on the Coventure Guiding Principles, Lemonade Insurance would get an 80-90% or an A- or āļøāļøāļøāļøāļø (the extra star for being a Certified B-Corp).
Also, if you want to learn more, listen to Daniel Schreiber, Lemonadeās CEO & Cofounder on this podcast with Kara Swisher.
Talking of Social Good Scorecards
Hunter Walk of Homebrew, a Seed-Stage Venture Fund, suggested a Social Good Scorecard. While this seems to be built upon the triple-bottom line business model, itās nice to see it expanded. It might also be a great slide for founders to integrate into a pitch to Homebrew. Who knows, it could fit into a future thesis they may fund?
What other Ps should be added? Planet?
My Scribblings
CO3 is the acronym for my virtual startup studio, Coventure Coffee & Coworking and my upcoming podcast
In the podcast, we riff on startup ideas while integrating an authentic social good mission (like zebras)
Which, hopefully will lead to a network of businesses (Powered by WeAreCO3) that do well by doing good, bringing about a better business model and a more sustainable and equitable economic engine
The Coventure Guiding Principles are the foundation for all startups in the network, with the 100% of profits designated to the mission
Thanks for reading this far. If any of your friends or colleagues are in the Social-Enterprise, -Venture, -Impact, or -Entrepreneurship space, your sharing this with them is totally appreciated. Cheers.