Feeds

CAPITALISM without PROFITS - Welcome to the Instagram Era!

Let's put Fraud Laws on the scrapheap - where they belong

Beginner's guide to SSL certificates

¡Bong! Doubters, shut your mouths now - and nail them shut. Two great pieces of news from the US have validated Silicon Roundabout as the pulsating heart of a new British economy. And a whole new way of doing capitalism.

Firstly, Facebook bought Instagram for $1bn. Instagram sounds like a coke dealer who turns up very quickly indeed - but it's actually an amazing invention. It makes your iPhone photos look like they've been flushed down the crapper, then reprinted on old Polaroid film. - technically I'm told it's a "Photoshop filter". All the usual industrial-era cynics came out of the woodwork to complain Instagram has made no profit.

AS IF THAT'S A BAD THING!

But that's the point.

Instagram has created $1bn of value and all without traditional revenue. Or any kind of revenue.

Instagram's secret is that it didn't waste investors money on old school R&D. None at all, in fact. I despair when I see how much R&D is thrown at old-world physical stuff like graphene. Talk about re-inventing the wheel!

At Bong Ventures, I've turned down several graphene pitches from hopeful startups recently. All of them claim to have made some kind of breakthrough - but not one of them had a compelling social media angle. None of them had a clue about Open Data, either. And frankly, the skill set of these people is all wrong for the 21st Century economy we're trying to nurture here in Shoreditch. Physicists, chemists - would you want to take one of these guys into a Co-working Event Space, like The Cube or The Trampery? Totally the wrong vibe.

The second piece of news is that Obama Barack proved that he Gets It. The President knows that the future of the US economy lies in flipping profit-free internet startups like Instagram, and has just given my pals on the Sand Hill Road a huge lift. The JOBS act [text] removes a lot of the paperwork that entrepreneurs and their mentors and investors need to do to take a startup public. Basically, we - that is, the investors - don't have to tell you anything. You just give us money.

This is what a Trust Economy looks like - and you have to trust us.

The Bong has been pushing real hard for crowdfunding enterpreneurs - like my pal Jeff Lynn of Seedrs - to be relieved of similar obligations in the UK. And I think people are starting to listen.

We can't have a dynamic, competitive, self-regulating Trust Economy if 20th Century fraud regulation is holding us back.

Some of these ideas are sketched out in an amazing new book by my pal Rahul Sativa. [Full disclosure: I took part in brainstorming and imagineering some of the concepts in this, along with my pal Nick Taleb, the Black Swan guy.]

Like Obama, Rahul Gets It too. He's the driving force behind the scenes in making Britain the most attractive destination for post-profit social enterprises. Like me he has helped transform the area from low-profit manufacturing to heavily-leveraged new media - exactly the tonic UK plc needs. I don't want to mention the Dalai Lama too much here - but Rahul, like His Holiness, knows that profits are what has been holding capitalism back.

I'll share some more insights with you from the book next week.

Bong Out. ®


Steve Bong is the founder of Bong Ventures, an early stage investor and incubator focussing on innovative new technology startups based in Shoreditch, London. He enjoys parties, foreign travel, Open Data, and draws his inspiration from Ayn Rand and the His Holiness the 14th Dalai Lama.

You can follow him on Twitter at @bongventures.

Security for virtualized datacentres

More from The Register

next story
Boffins who stare at goats: I do believe they’re SHRINKING
Alpine chamois being squashed by global warming
Space exploration is just so lame. NEW APPS are mankind's future
We feel obliged to point out the headline statement is total, utter cobblers
Down-under record: Australian gets $140k for pussy
'Tiffany' closes deal - 'it's more common to offer your wife', says agent
Internet finally ready to replace answering machine cassette tape
It's a simple message and I'm leaving out the whistles and bells
FedEx helps deliver THOUSANDS of spam messages DIRECT to its Blighty customers
Don't worry Wilson, I'll do all the paddling. You just hang on
The iPAD launch BEFORE it happened: SPECULATIVE GUFF ahead of actual event
Nerve-shattering run-up to the pre-planned known event
Win a year’s supply of chocolate (no tech knowledge required)
Over £200 worth of the good stuff up for grabs
STONER SHEEP get the MUNCHIES after feasting on £4k worth of cannabis plants
Baaaaaa! Fanny's Farm's woolly flock is high, maaaaaan
Adorkable overshare of words like photobomb in this year's dictionaries
And hipsters are finally defined as self-loathing. Sort of
Not a loyal follower of @BritishMonarchy? You missed The QUEEN*'s first Tweet
Her Maj opens 'Information Age' at the Science Museum
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.