Experiment In Understanding Human Value

When I started Idea Nexus Ventures, I started with a thesis:

Humans are the most undervalued asset class.

For more on that thesis, watch this video.

I also have a new system architecture that I believe will end up being the new architecture for the internet, making it human-centric instead of computer centric.

This is all based on my study of Quantum Economics, which looks at the value of information and how that value changes over time. That led me to look at how information moves around in companies and how those structures are incredibly inefficient. Companies are blowing tons of money because they don't know how to do things more efficiently.

I believe I do.

So, I've designed an experiment, and I'm willing to bet a considerable chunk of my venture studio on it. Instead of raising money to build out a team and create products as quickly as possible, I'm instead raising money to give other people stability.

The Experiment

I've identified 10 people, all over the world, who are trying to change their circumstances, but are slowed down by the economic realities of the world. I want to give them space and safety from which to explore their ideas.

Instead of shooting for 1 success in 10, the way a typical VC would, my goal is to have all 10 people succeed, and create sustainable businesses for themselves. While they are doing that, I want them to share their stories with the world, which means that, in addition to being a venture studio, Idea Nexus Ventures will also be a media studio.

Finally, I'll be able to provide them guidance on building abundant economic systems, which are positive-sum systems that benefit all participants. That means their businesses will benefit everyone involved and will act as case studies for the book I'm writing that is tentatively called "Engineering Generosity: the need for abundant systems in the age of AI".

Here's the structure of the experiment: I want to raise $1.5M, approximately a pre-seed round in current company fundraising terms. Of that $1.5M, $1M will be designated to pay a $75K salary with full benefits to 10 people I've selected. (so, assuming $75K + $25K overhead/person)

Of the 10 people, 5 are from the US, 2 are from Argentina, 1 is from the UK, 1 is from Australia, and 1 is from Nigeria. This includes 3 couples and 4 singles.

I want to show that this model can work with a number of people in a variety of situations and backgrounds. Of those 10 people, I'm probably the one most likely to be able to receive some kind of venture funding, because I'm a software engineer with startup experience and I've studied the ecosystem, but even I've got a number of things working against me. The majority of these people would never even consider venture funding as an option.

Which is why I think they are a great way to prove how venture models are typically extremely inefficient.

I do have a focus on two areas: education and creators. Of the 10, 3 are current or former elementary school teachers and 1 is a former university professor. 5 are currently creating content on a regular basis.

I'm focusing on those areas specifically because they are 1: drastically undervalued by society for the work they put in compared to the long-term value they create for the world and 2: directly tied in to the transmission of information to people. They are very closely tied to the main areas of my economic research.

Fundraising Details

I'm currently planning my fundraise in 3 tranches, in order to reward earlier investors.

Tranche 1: $250K on a $12M Post-Money SAFE with a 20% discount

Tranche 2: $500K on a $14M Post-Money SAFE with a 15% discount

Tranche 3: $750K on a $15M Post-Money SAFE with a 10% discount.

I will also not take any ownership directly in any of the companies the people in the experiment create. The money offered is only to provide stability, because I believe that the information they will share is more valuable than any ownership stake. If I end up being part of the companies in a more direct role, that may be something that gets explored, if it's beneficial to everyone involved. Any ownership stake I take will be on behalf of the venture studio, so investors will share any ownership I receive.

Investors will also receive ownership of the products I launch from the studio. I'm planning on launching a number of different products related to the Nexus architecture, because there will be drastic shifts in the way the internet functions. There will be plenty of opportunities for new products to enter the market, and I'll be launching products as I see opportunities to do so.

Finally, investors will also have the closest access to those involved in the studio and will be able to potentially invest in companies that participants launch. It's between them and the people launching the companies, but that relationship will exist and they'll be seeing regular updates on their progress, so that will likely be valued by the people building new companies.

If you are interested, please either send me an email at leo (at) ideanexusventures.com or find a time to chat with me:

Investor Interest - Leo Guinan

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