Launching New Service Soon

by | Nov 23, 2022 | Integrated Capital, living systems investing, sustainable investing

What are the Problems Pythia Capital is Solving?

Reductionist, linear and zero-sum game solutions to complex problems lead to unnecessary trade-offs. For example, investors can make billions investing in a new drug that has many side effects and only moderate health benefits. However, we often ignore the root cause of many illnesses such as environmental toxicity, socioeconomic issues, or severe emotional trauma that can have very negative impacts on health and wellbeing. Often significant money is made in concentrated and very connected groups who are more concerned about getting rich than figuring out how to make sure water is clean, for example. Zero-sum game solutions like this are institutionalized in our economic systems.

Most sustainable (such as ESG or environmental, social and governance funds) and high impact investment funds still rely on zero-sum game, linear investment frameworks. The “greenwashing” by both companies and investors can be so extreme that the unintended tradeoffs can be worse than regular investment strategies. The following is an example of some of the problems with ESG investing: https://www.bloomberg.com/graphics/2021-what-is-esg-investing-msciratings-focus-on-corporate-bottom-line/.

What is Pythia Capital’s Solution?

An economic model that leverages the power and wisdom of complex, sustainable living systems enables people to work together in interdisciplinary ways to solve multiple, interrelated, complex problems in more win/way ways. These principles enable all kinds of businesses and investors (regardless of whether labeled as impact or sustainable) to work together to create value in more balanced and coherent ways.

To reach the 17 UN sustainable development goals, using a nonlinear, complex living system framework to re-architect capitalism is essential. Our framework uses true living complex systems sustainability principles that are far more revolutionary than the typical ESG, sustainable, and impact investing frameworks that exist today.

Our economic system needs to integrate nonlinear, living complex system principles to encourage entrepreneurialism that is more dynamic, vibrant, inclusive and balanced. This is because this type of economic system follows billions of years of evolution of what makes a natural system sustainable and regenerative. Win-win solutions to complex problems can only come from a framework such as this. This process is also the most empowering, creative and balanced way to find, develop and finance new breakthrough science and technology.

We use the framework to visualize future trends, to invest in businesses that apply advanced science and technology to solve complex problems at the root cause, and to better understand and systemically map the true nature of many interrelated complex global problems. This integrated investment framework sheds light and clarity on the most polarizing and controversial complex problems in the world today such as the highly interrelated public health and environmental crises. Even more exciting is that this process is designed to incubate and support some of the most passionate, creative, and talented entrepreneurs, regardless of where they are from and what background they have.

Summary:

We have been working diligently on this service for quite some time and we are excited to launch our first service soon. Our approach to living systems investing is very authentic, as we use actual sustainability principles, not principles that some people or groups made up and gave the label “sustainable” or “regenerative” just to attract funding. Often these types of projects are just window dressing. They contain the same energy and problems as the linear, zero-sum-game economic system that we have now.

The real danger we face is worse than the significant uncertainties of all the global crises. It is very dangerous if the whole area of sustainable business and investing becomes the main vehicle for an Orwellian take over of global society disguised as “solving climate change” or “fixing the financial industry.”

Most importantly, we are quickly reaching a time of extreme incoherence in the world across all our essential systems. These “false” solutions create a false “order in the chaos” and they divert attention and resources from real solutions that deal with root causes of our highly interconnected crises. The incoherence and lack of vitality for the people and planet remain, but even worse than before. We all become characters in a dystopian sci fi novel if we are not observant and do not connect the dots correctly.

We do not make false promises on easy solutions for the interconnected complex crises. However, true “order in the chaos” that is emergent, coherent and full of vitality for people and planet can only come from modeling our economic systems on real sustainability principles.

Our first service is a combination of trends research and public investing (areas one and two below):

1)Prognostic Research

2)Small-to-Mid-Capitalization Investment Membership

3)Direct Deal Service:

Please contact us with any questions on any of our services by filling out the form listed in all three service areas above.

We are starting to look at private deals for service are number three. We are also speaking to aligned investors, so please contact us to learn more.