Good morning!☀
Here's your weekly roundup of the most interesting things I've read, learned, or listened to. Relevant breaks from the endless news cycle to feed your brain and help us all stay interesting.
📃A recent essay - Incentive Superstructure
We look at systems as if they’re static structures imposed around us. But, so far, in the ‘20s, structures don’t mean anything. Monetary policies, employment policies, personal relationships - nothing is the same as it was 2 years ago. But the one structure that can actually guide us through both calm and tumultuous times is the Incentive Superstructure.
“Show me the incentives and I will show you the outcome.” - Charlie Munger
The Incentive Superstructure is the architecture of individual and organizational incentives that drive and depend on each other. This is the architecture that consistently dictates our societal outcomes. The most exciting thing about it is that we aren’t subject to it, but in charge of it. Read more from my recent essay here.
🤼VC and DAOs:
Venture capital investment has grown to peak levels over the last 24 months. Now, VC itself is evolving. Not in the sense that it has been “evolving” with “data-driven” sourcing for many years, but the actual structure of investments are changing.
The first alternative to traditional venture capital was the angel investors. Angels soon graduated to super angels - typically wealthy founders investing their own money post-exit to support the ecosystem. Some super angels grew so prolific and successful with their investments they created LP structures to deploy funds more efficiently. They graduated into Solo Capitalists. Today, Angelist syndicates and rolling funds build communities of individuals around investments. Deal leads can now incentivize folks who bring them deals with carry (equity in the deal).
The next iteration will be completely decentralized. Today, deal leads will share carry with folks who bring them deals. This will continue to expand as operators in the wild typically bring the best deals. Communities of smaller checks who can add more to their portfolio companies than typical fund structures. Don’t be surprised to see these take the form of DAOs.
📶Gray wars:
Jacob Helberg recently published Wires of War in which he discusses the ongoing cyberwar between US and China. Helberg formerly led Google’s efforts to expand in China and combat disinformation. Now he’s senior adviser at the Stanford University Center on Geopolitics and Technology and an adjunct fellow at the Center for Strategic and International Studies (CSIS). So he knows what he’s talking about.
In his book and excellent podcast with Pomp, Heldberg outlines the gray war that the US is engaging in. Helberg defines “gray war” as conflict that doesn’t result in physical destruction or direct loss of life, but is combative nonetheless. We were introduced to the gray war with (cyber) weapons that have become increasingly incremental in damage and, thus, more useful. Aside from the Gray War, Helberg covers modern censorship (overwhelming speech rather than limiting it) and the US going on the offensive vs. authoritarian regimes. Listen it here.
“We actually don’t have to lie. We can just make facts more widely known…” - Jacob Helberg
✒I'm currently working on:
A piece on how collective mindsets shifted due to COVID and lockdowns.
The biggest thrust of the pandemic period for many people I’ve spoken was a complete deddening of inirtia. COVID and lockdowns served as a forcing function for people to question their trajectory and goals. Why do I live here? Why do I do this job every day? If this was you or you have thoughts that can contribute to this essay, reach out.
This stuck with me (click the link to read the whole thread):
We can still have nice things:
— Nico
www.nicochoksi.com | @nico_in140
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