Global Trade for every Startup

One of the big hurdles for entrepreneurs trying to grow fast and go international, are trade rules, currency considerations, trust, transaction financing, dealing with letter of credits and much more. Global trade for startups is virtually impossible. After getting global four times with our previous businesses, we decided to make it easy for all young entrepreneurs to go international. We started to design a global trade network, leveraging latest blockchain technology, smart contracts and our own global business know how.

Most super growth tech companies were still too slow

When we look back in time, Facebook demonstrated an unbelievable power of growth, yet it was too late in Asia. The same goes for Uber, Tesla and others. On one side conservative investors argue about speed to go international. Yet later stage investors argue about missed opportunities. Conventional growth techniques just did not allow mach faster growth than the current world leaders showed.

We don’t want to support monopolies, but….

Amazon for instance had a great chance to go global without anybody copying it right way. However new contenders like Alibaba do not stop taking market share bit by bit. That means monopolies find their contender quickly and that is a good thing, because we need diversity and options. But maybe it’s a good idea to give fragile startups an opportunity to go international even faster and then learn to defend their innovation at a later stage.

Blockchain based global trade for startups

Global trading platforms are the most used example when blockchain technology get’s explained to industry executives. However global enterprises can’t just rip out their conventional IT system and replace their gigantic databases with a blockchain. Nobody even knows if a slower blockchain would hold the load. That is very different with startups. Their problem in international trade is the initially small volume. For a blockchain however just right. Bringing thousands of startups quickly on a centralized system would be a nightmare. But using a self regulated decentralized solution a great opportunity. Building out interfaces to adopt the blockchain by a startup is easy – for enterprises a life long project. Making global trade rules standardized through smart contracts can be very easy adopted by a startup that has no real rules today. Just creating all the smart contracts for an enterprise would be a complex undertaking with lots of risks and liabilities.

The Society3 Blockchain would allow technology resellers in any corner of the world to safely buy and sell innovative technology that also comes from any place in the world. Tokenized businesses where anybody can trade anything makes the business much more valuable and much easier to conduct.

What does that mean in reality:

  1. Instead of creating, negotiating and working based on tens of pages of a distributor or sales contract written in many languages and considering many currencies, we invented self executing contracts that define the trade process once and for all. If adjustments are needed in future situations they will be adjusted for future deals as well.
  2. Instead of trying to understand the other trade party and developing some vague sort of trust, all players on the trade platform are authenticated and clearly identifiable. Trust development is taken over by the system.
  3. Orders can be placed by anybody and send to any trade partner. The fully decentralized trade model does not need any “distribution organization” in between. The blockchain and the corresponding user interfaces take care of the transactions and processes.
  4. Shipments are  made by the companies (startups) using any of the freight forwarder who docked onto the platform. Tracking and processing of all documents are taken care of by the blockchain and the corresponding self executing contracts.
  5. Delivery can be made to business partners or directly to end customers. Payments are made in crypto currency and every party takes care of the conversion of crypto into the respective local currency and back.
  6. Smart contracts keep track on both, the order flow and the shipment flow in digital form. Tax and customs documentation can be either printed when necessary or also digitally transferred.
  7. In case of a return due to a defective product, the same process goes reverse.
  8. Transaction cost is covered through miners getting paid for their job in tokens and only over time there maybe a small fee in the sub % range necessary to keep the platform up and running.
  9. Producer, customer, shipper, customs authorities and any other participant can be rated and that way develop reputation over time.
  10. The system provides unparalleled transparency due to its decentralized management at lowest possible cost.

Never before it was so easy to sell and buy products from all over the world to all over the world. Most of the expensive and delay causing intermediaries are reduced to one: the decentralized blockchain.

If you like to be part of the Global Trade System project, influence functionality and beta-test the first version of the GTS as soon as it comes out, please join the group and apply for the project.

GTS Project Application

Application link will be available soon

 

The initial value of innovation is zero

Getting innovation to global markets

Bringing innovation successfully to market is key for prosperity

Nations all over the world pour millions and billions into innovation support – yet only a fraction of those inventions are ever seen their markets. Innovation officers consider bringing those innovations to market the sole responsibility of the entrepreneurs who created them. The job is done when an innovation was funded. An estimated 2% of the innovations funded by the European Commission become eventually successful solutions – the rest of the Millions in funding evaporate.

Instead of taking some of the grants to ensure that the major part of the investments in innovation even has a chance to survive – more money is thrown into ideas that all too often already from the beginning have no chance to get anywhere. This frustrating waste of money time and resources drove us to rethink the core values of innovation.

The initial value of innovation is zero

Any invention or innovative product or service has no value just because it exists. Assume, somebody develops a battery in the size of a matchbox that can host 1 Gigawatt of energy for 500 hours. As long as nobody has access to it, there is absolutely no economic value for our society. That power box does not create revenues, it does not create jobs, it does not give business to trade organizations and no added energy to its actual consumer.

Only if that invention is brought to market, it begins to create an economic value to the economy / society it is made available to. And the larger the geographic range is, the higher the value. Social networks have been in existence in very rudimentary forms before Facebook, LinkedIn and Twitter. But only once the innovation of digital social connections became a user friendly appearance and was brought to large numbers of the population it became of real value. And in almost all cases the value for the company is created when the value for the consumer is created.

Innovation Value

We see a clear correlation between consumer value and innovation value. If we stay with social media media for a moment, we see that correlation in several instances pretty clear. The US social media company LinkedIn started in 2003 and shortly thereafter German competitor Xing. Xing was even able to make it to become the first social media company in the world to do an IPO. However LinkedIn was more appealing to users and was strategically marketed on a global scale. Xing vanished away and LinkedIn dominates that part of the social media tools. The IPO for Xing did not help, the money they gained did not get them to the top. And exactly the same happens in the early phase of a business – when they are still startups.

Switzerland for instance is known for its innovative people and companies. It’s the country with one of the most patents per capita. Yet – in the past 20 or 30 years not a single tech company made it to the top. The innovation was purchased on an very early stage, investors and entrepreneurs chose the quick money over the economic value potential it could have for the country and sold the business, one after the other to companies who mostly siting other countries. The Innovation Value for country of Switzerland is nearly zero because the value creation, job creation, revenue and tax creation is happening in other countries.

Innovation Value and Valuation

Companies like Microsoft, Google, Facebook, Intel, WordPress, and lately Bitcoin dominate the technology related behavior, data usage and providing across the entire planet. All those companies have been considered vastly overvalued and part of a crazy hype. Just a few years later we most realize that the value seem to be OK and even if not, those companies dominate the rest of the world. Recently however the US dominance is broken and another country is becoming the most critical enemy: China. Europeans, Africans, Latin Americans just turn their heads from west to east and now complain about overhyped companies like Alibaba, Baidu, Tencent, Huawei, Xiaomi, Geely and so forth. All those companies shine with their high valuation. And the high valuation in turn attracts investors, talents, consumers and general attention. Only the combination of highly innovative products PLUS well marketed solutions create an economic value for a society by creating large amounts of jobs, revenue and taxes.  And the valuation from far sighted investors is the best indication for the economic potential in the future.

Innovation Value for a Economy / County

A country which does understand that network of value, innovation, valuation, and marketability of their startups and entrepreneurs has a great chance to benefit from the innovation they support, sponsor and fund. For others it is a risk of a large money and brain drain and even worst – like in Switzerland, large sums of money are poured into innovation and those who actually seem to have a great chance to grow are purchased long before the value could provide a return to the donor.

 

World Innovations Forum Kickoff

First global innovation gathering

In June 2018, for the first time, entrepreneurs, investors, enabler and government officers from around the world meet at the World Innovations Forum. The forum helps to get a better picture about the status quo of global innovation and entrepreneurship. This conference of the visionaries will show how far even emerging countries are and what we can do to help bring innovation  better to market.

Innovation of no value

Around the globe, billions are invested in innovation. However as long as no support is given to bring those innovations to market, the large majority of great ideas evaporate. The World Innovations Forum will address that and help make a change. More innovation need to find their markets and contribute to global prosperity.

Technology at Risk

Artificial Intelligence, Crypto Currency, Robotics, Autonomous Vehicles, Technical Implants, DNA Manipulation and more are considered risky technologies and at the same time great advances of the human mind. We don’t want to have neigh sayer pound on the technology and obsessed engineers defend it. Instead we will discuss many of those topics with those who have a common sense and explore the future evolution of those technologies.

Getting startups into global markets

It’s always too late and always too early when young entrepreneurs grow international. Today’s networked world, digital and online practices and new technologies open up all new opportunities. How can a startup from Nigeria go global 2 years after founding and be in 20 countries a year later? Yes it’s crazy, not health, too fast, irresponsible and way too risky. And yes, it’s the core spirit of entrepreneurship. With the Society3 leadership team having brought 4 companies international within their first four years and today’s technology we will help startups go broad faster than ever before imaginable. Of course with all the risks and challenges and with all the opportunities.

A global entrepreneurial mindset

After all, it is the unbelievable spirit in Silicon Valley that is responsible for driving all the other advantages of the area. Silicon Valley is known to be the epicenter of innovation, the best place to get funded and the most compelling place to work. But if you do a deep dive analysis you find an interesting chain: The amazing mindset of all the like minded people makes working more like fun – not work. With that it makes it easy to learn from each other, probably 10 times faster than anywhere else. If you combine the work energy and the super fast learning, top notch companies are only the result. That attracts investors who in turn learned to nurture that spirit and develop it even further. NOW – since we cannot send millions of startups to San Francisco / Silicon Valley, we need to get creative if we want to increase the success rate of all entrepreneurs.

Creating that spirit in other places has been proven to be possible. Now we want to create it across the world. This is one of the key projects we are kicking off at the World Innovations Forum in June this year.

TICKETS

Unfortunately we have only a very limited number of tickets for this year, about 10 for each of the 25 countries, so please register early to make sure you can join.

Ticket sales is now open.