Loomio
Tue 4 Oct 2016 3:31PM

Strategy Consideration: build platform co-op asset acquisition team/working group

SF Suresh Fernando Public Seen by 462

I've been thinking about what is unique about this initiative. This is what I see...

There are a number of different Platform Co-Op initiatives that are in the works, technologies in development etc. What makes this initiative unique IMHO is the fact that we are talking about an ASSET ACQUISITION.

For reasons I've already advanced, I think it's unlikely we will actually be able to purchase Twitter.

What we can do, however, is to put together a team that is interested in looking at other existing platforms/technology based infrastructure assets and exploring acquisition strategies.

This strategy is to be contrasted with building platforms from the ground up. Note that, given the complexity of building a community that can execute a large acquisition, this team will have to have a very broad set of skills; finance, co-operative governance, technology, community infrastructure etc... So what might this look like?

First of all...the Platform Co-operative movement is about creating the real sharing economy. It's about ensuring that the benefits of a platform are shared with the owners of the platform (in contrast to Uber, AirBnB etc.). This team will have to embrace these principles in a formal way since we will be dealing with a constituency that operates formally; financiers, philanthropists etc.

Specifically we will have to operate within the confines of a co-operative structure (that will have to be incorporated somewhere). If we are going to engage investors, we need a representative legal structure.

The biggest challenge will be to put together a strategy that will enable the team to raise enough money to buy a sizeable asset. A portion of the funds can be raised via crowdfunding, but much of it will have to be raised via rich philanthropists, impact investors etc.

What this approach will result in is building a bridge to a number of institutions and individuals that have a lot of capacity. This will have spin off benefits for all of us whatever happens...

Like @bonniefoleywong, I also have a finance background, having spent 12 years in the industry. I spent 7 years as a stockbroker at a large Canadian investment bank and built a $30 million managed asset practice. This was followed by 5 years running my own investment banking group.

Given this, I have a pretty good sense of how these transactions work and their complexity. I would be happy to play a role in shaping this aspect of the overall strategy with whomever might be interested... if pursuing this approach is of interest to others.

I look forward to your thoughts!

NS

Nathan Schneider Tue 4 Oct 2016 4:46PM

I'm really glad to see this kind of longer-term thinking. Twitter might not be the right target, in the end, but better ones are sure to arise, and we need to be ready with the financial mechanisms in place ready to make plausible moves toward co-op conversion. I think that could be even more powerful than just #BuyTwitter. #AssetCoop

SF

Suresh Fernando Tue 4 Oct 2016 4:59PM

@ntnsndr - since you are the primary convener around the topic of Platform Co-Operativsm, and will also be convening in NY in November on the topic, maybe we can think about this infrastructure (Loomio, Slack and whatever else... ) as connected to the conference...and the this particular post as part of a discussion on long term strategy...

So... this context and the people that are engaging virtually become a part of the longer term infrastructure and strategy...

Of course this would have to be synergized with your existing team and infrastructure.

NS

Nathan Schneider Tue 4 Oct 2016 5:00PM

Yes, we're currently formulating project proposals for the Platform Cooperativism Consortium. This could be one of them.

MC

Matthew Cropp Tue 4 Oct 2016 5:38PM

A few thoughts:

  1. In the worker co-op world, in the last few years there has been a recognition and strategic commitment to conversions rather than start-ups as the biggest bang for the buck in increasing the spread and impact of worker co-ops, with the Democracy at Work Institute (DAWI) playing a key role coordinating conversion practitioners from around the country. (see: http://becomingeo.org/) The success that we've been seeing on this front over the past few years suggests to me that this same approach has great strategic promise for the Platform Co-op movement.

  2. In terms of organizing and mobilizing aligned individuals, networks, and capital, one thing that I think Platform Co-op advocates should consider engaging with is starting local co-op investment clubs. Joe Riemann, who works for Shared Capital Co-op and was one of the co-founders of the Co-op Principal investment club in Minneapolis, has been extremely helpful to the group of us who are aiming to replicate their success in Vermont. If, as we maneuver and consider options, we can get a few thousand people systematically accumulating capital on a monthly basis into a network of these clubs, that (a) would provide a not-insignificant source of investment when we need is, and (b) build a network of aligned individuals who could be advocates in their larger communities when it comes time for a mass community capital campaign. See: http://thecp.coop/ for the Minneapolis model.

  3. When thinking strategically about how we build out the Platform Co-op economy, I've come to the position that a co-op social media network is a prerequisite for taking on the Uber and AirBnB Death Stars, because the user base of that platform can then relatively easily be plugged into different platform co-op services. Essentially, the idea being that the social network is the hub, and each service (ride sharing, home sharing, etc.) is a spoke that can be plugged into that hub. From that strategic perspective, talking about acquiring Twitter is a good place to start, with various more "realistic" fall-backs being developed in the wings.

ST

Sam Toland Tue 4 Oct 2016 6:00PM

Just want to second @sureshfernando general point - I think that the #BuyTwitter campaign is best used as leverage towards building the infrastructure (leadership, legal, financial, social) to attempt the takeover of an existing deathstar platform.

Twitter may be an appropriate target for this (and is a good initial focus), but a medium term view focused on any eventual democratically chosen candidate that arises - is the better spent time in my view.

To @ntnsndr I think the PCC is a good central nexus for a project like this between this ephemeral stage and a more concrete structure (membership-based organisation incorporated, with executive team in place).

NS

Nathan Schneider Tue 4 Oct 2016 6:01PM

Though right now PCC is mostly theoretical, so don't count on anything from it. Right now, the best thing we can do is self-organize.

CC

Chris Cook Tue 4 Oct 2016 7:44PM

Hi Suresh, Thanks for the invite to join this group (and Loomio), and kudos to Nathan for coming up with the concept of a Twitter buyout. I sort of introduced myself just now on the start up thread.

My starting point is that both Debt and Shares (in a Joint Stock Company- whether the shares are genetically modified or not)) are fundamentally incompatible with the Sharing Economy. Basically digital (absolute) either/or property rights and instruments are incompatible with the analogue real world we live in.

So what else can we do? My action-based research into resilience is both at macro level where I advise governments, and - on the premise that networked resilient local micro gets you resilient macro - at community level.

I think that simple risk sharing protocols (examples are Protection & Indeminity (P & I) Clubs and the UK Company Limited by Guarantee form) and production/revenue sharing protocols (eg US LLC and UK LLP entities) - allow us to transcend the limitations of debt, equity, derivatives and their hybrids.

The key is the funding instrument - essentially a promise returnable in payment for value provided by the promissor - which was the original form of "stock" which gave rise to the expression 'rate of return' and pre--dates all other instruments.

Bottom line is anything is possible using the right agreements and instruments. But we would also need to come up with a damn good strategy for Twitter's further development which would give the management and investors reason to join our Twitter 2.0 club.

Personally, I think Twitter's one-to-many broadcasting capability and tagging could make it - on the right technical/broadcasting platform - a crucial element of a next generation payment utility - ie the ultimate Platform Co-operative,

PG

Priscilla Grim Wed 5 Oct 2016 12:09AM

FYI: Twitter is totally open sourced: https://twitter.github.io/

AI

Alanna Irving Wed 5 Oct 2016 10:40PM

@sureshfernando - what I'm hearing from you is that, while the idea of buying Twitter is a very interesting case study, it might not be feasible. But perhaps we could use this momentum and interest to think longer term, toward an asset buying co-op (as that's the general case of the specific case that brought us all here).

@ntnsndr has said elsewhere that he'd like to keep this group focused on buying twitter since that's the rallying cry, but your suggestion doesn't take the focus off that mission, it just looks at it through a broader lens that could also be applied to cooperativising other assets. It's not either/or, but yes/and. I think it's a good approach.

If what I've said is correct, could you formulate it into a proposal for this thread? I think it would be great to have it succinctly laid out, and to check how everyone else feels about it as a way forward.

SF

Suresh Fernando Thu 6 Oct 2016 12:07AM

Nathan took care of it!

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