By Ari Eisenstat
With the coming singularity of technology, apex of social connectedness, and horizon of environmental integration I believe that we are on the verge of a new industrial revolution. But with these new industrial systems, how can we adapt our financial institutions to work towards the ideals of a perfect market? How can we lower barriers to entry, raise access to information, and eliminate externalities? Furthermore, if corporations are going to be considered people, how can we make sure that they are good people?
I have led innovation of hedge funds, think tanks, nonprofits, sustainable agriculture, art technology, creative incubators, educational organizations, and venture capital. I am currently working with great minds at Stanford University in creating workshops to promote impact investing. For the past 6 years I have been developing practices for a more equitable and efficient market. This is an introduction to a possible economic and technologic paradigm represented by social entrepreneurship.
I founded DRAEM VENTURES as an impact venture capital fund to empower entrepreneurs and technology to solve the worlds biggest problems while doing what they love. We have been making microinvestments in top startups for over a year. Now, in order to maximize the impact of our mission of finding, funding, and founding the next generation of socially, environmentally, and technologically conscious entrepreneurs, I would like to formally propose an upgrade in our financial systems.
These specific upgrades may be implemented through next generation digital tools in quantum computing, encryption, equity, accounting, and forecasting. DRAEM is building the first iterations of this system as a financial service platform and will assist investors, businesses, nonprofits, and governments in learning and adopting the technology.
Quantum physics expresses relatively limitless potential in computing and we are currently seeking cost effective cases to build on its processing power. A key to quantum properties is the ability of the electron to react to both parts of a binary equation at once. With the capacity to solve multiple variables of problems simultaneously, classical computing and encryption becomes obsolete. Going from software based on only zeros and ones to an infinite set of numbers requires completely new systems.
The biggest necessity for change in this paradigm shift will be in cryptography. Because quantum computers will be able to crack any code, we can use that very technology to create a protocol where the encryption observes that it is being hacked and changes its password in real time. This is called quantum cryptography and fortunately, with these new programs, we may work to maximize human potential and promote economic liberty and justice for all.
To start leveraging these technologies, DRAEM proposes to create a public business development corporation. This could be a completely democratically controlled benefit corporation with transparent quantification of total impact on the economy, society and the environment. Through this entity, shareholders and stakeholders may capitalize on the company's triple bottom line value creation in terms of people, planet, and profit.
The first operation would be to instate a microequity fund to invest in high potential social enterprises. Instead of classical stock offerings, we could create digital shares of companies that will offer automated governance, dividends, and accounting through a cryptographically generated blockchain. This technology has been popularized by math-based currencies using a public ledger to secure and decentralize the transfer of ownership. The protocol may then utilize self-executing smart contracts to allow for efficient capitalization and organization of companies, thus creating the Quantum Cryptoequity infrastructure.
With this, DRAEM would launch a predictive analytics platform for startup investments to scale and streamline the due diligence processes. Through an automated and transparent data system, DRAEM may quantify the targeted markets, industries, and technologies while measuring the skills of the founders and correlating the information to existing studies on the success of startups. We would work with the nonprofit and higher education communities to begin to find, found, and fund the first 1,000 international corporations with for-benefit fiduciary duties.
DRAEM would then provide a crowdfunding and sales platform for total business capacity and offer technology to issue the Quantum Cryptoequity as digital and transferable stock. Funders may use this to invest in and co-govern the corporation. With the value being created, DRAEM and the portfolio companies may contribute to other social enterprises, charities, and public initiatives with the digital equity to share incentives and benefits. We hope for this to have a network effect to strengthen a global community aligned with the same values.
Once the first set of companies are created, the venture fund may grow to incorporate later equity rounds and reinvest in a large and diverse round of the next generation of benefit corporations. Then, DRAEM may facilitate a secure, transparent, and decentralized stock market and incorporate impact investment banking services with the Quantum Cryptoequity technology.
While this is a long term project, all of these tools are currently feasible. DRAEM has the vision to bring them together and open source the technologic, economic, social, and environmental data to create new international standards for businesses and investors. Until then, we will continue to be dedicated to empowering the next generations of entrepreneurs.
Imagine our economy impacted beyond the scale that it was changed by information technology. Now, with the computing power to process the universal data of the age, the potential of civilization stands at the curve of an exponential frontier. If we proceed consciously, the future of technology may present an economy beyond our wildest dreams...