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Uber • Launched June 2010
• 300 cities in 58 countries • Limited physical assets • USD 60 bln valuation (Ericsson – USD 32 bln) Exponential growth by “doing more with less”
A system that activates the
untapped value of all kinds of assets through models and marketplaces that enable greater efficiency and access. - Botsman The Sharing Economy Harvard Business Review, 2014 The Sharing Economy: Embracing Change with Caution http://www.slideshare.net/eteigland/sharing-economy-webb
The Sharing Economy is enabled
through peer-to-peer (P2P) transactions on multi-sided platforms (MSPs) http://sloanreview.mit.edu/article/strategic-decisions-for-multisided-platforms/
Spawning a new form of
capitalism - Modern day sweatshops? Digital Robber Barons? “Monopoly” platform “Monopoly” platform “Perfect competition” “Perfect competition”
Four forms of crowdfunding Form
Benefits for funders Donation- based Donation Intangible benefits. Reward- based Donation or pre- purchase Rewards in addition to intangible benefits. Equity-based Investment Return on investment if company does well. Rewards sometimes also offered and intangible benefits may motivate too. Loan-based Loan Repayment of loan with interest. Alternatively intangible benefits if loan given interest-
Democratizing innovation through access to
capital? Women in USA <30% of business owners <15% of angel investors <10% of venture capitalists Marom, Robb and Sade 2014 Women on Kickstarter 35% of project leaders 44% of investors Women invested in women project leaders (>40% of projects) VS
Following regulations… EU/EEA
No country can require a prospectus for round of <100,000 EUR For round of >5 million EUR an EU prospectus is always required In Sweden Limit is 2.5 million EUR without a prospectus Less than 150 ‘non-qualified’ investors without a prospectus ALSO shares in non-publicly traded companies cannot be advertised in Sweden
Thomas Jefferson (1816) “Laws and
institutions must go hand in hand with the progress of the human mind.” The problem is that the human mind itself can’t keep pace with the advances that computers are enabling. http://wadhwa.com/2014/04/15/mit-technology-review-laws-and-ethics-cant-keep-pace-with-technology/
The challenge of ensuring trust
Leap of faith when meeting strangers -> Increased trust in society? Innovation is forward looking while regulations are backward looking. http://www.weforum.org/sessions/summary/rise-demand-economy
Challenges in the Sharing Economy
Ensuring trust − In the platform, other users, products and services, financial transactions? Regulatory − What is “employment”? Security, taxation − What are new “rules” around “consumption”? Taxation, safety, big data and privacy, IP and ownership Economic implications − New pricing mechanisms -> deflation? − Lower demand for capital in “Zero Marginal Cost Society”? − Net effect on labor productivity?
Four scenarios for 2020 High
Tech Adoption Global Recession Global Growth Internet of Space • Differentiated SE platforms •Attraction of talent •Test market •Focus on privacy and integrity •Transitioning industries Freelance Economy • Differentiated SE platforms • High tech skills “exported” • Expansive crowdfunding • Neo-sharing • “De-urbanization” Business as Usual •Limited SE platforms •Neo-sharers •Steady growth in freelancing •Crowdfunding Shadow Economy •TaskRunner society •Vast urbanization •Monopoly SE platforms •Barter economy Low Tech Adoption