Using the Natural Intelligence of Nonlinear, Complex Adaptive Systems as a Model for Investing–What We Do

by | Feb 9, 2016 | Our Story

Pythia Capital is a unique research, data and investment services company, focusing on educational services with trends research (industry, scientific and technological), direct private company and blockchain/crypto investing, and subject specific investment newsletters modeling its business structure and investment processes after living, complex adaptive system principles.

We created a new investment framework that leverages the innovation of complex adaptive systems (“complexity science”).  We are verging on big potential breakthroughs across many fields as interdisciplinary teams of scientists, engineers, data scientists, mathematicians, and AI experts accelerate our understanding of nonlinear, complex adaptive systems.  We are following billions of years of evolution to optimize the process of solving complex problems across nonlinear systems.  We follow these principles to identify these new breakthroughs, as well as to optimize our own business and investment processes. Our core investment framework is built on the 12 permaculture principles, integrating into these principles ancient shamanic wisdom as well as advanced scientific and technological concepts such as complexity science, chaos theory and quantum science.

Our predominant scientific, business, and financial models, structures and processes lead to reductionist and linear solutions to complex problems, leading to unnecessary trade offs such as destruction of our natural environment, unequal distribution of wealth, crony capitalism, and a general deterioration of the overall vitality and well-being of most members of society.  We are following billions of years of evolution to optimize the process of solving complex problems across nonlinear, complex systems, the best way to improve our communities and society in more win-win ways.  Our goal is to use free market principles, following Mother Nature’s lead.  Our investment framework is based on natural intelligence which is essential to solve our complex, interconnected problems in society.  Most of the existing sustainable and high impact investment advisors and fund managers are still using more linear frameworks that cannot handle the complex, nonlinear, and interconnected nature of the problems we face.  Most regular investment frameworks have the same issues.  Living system principles are much more revolutionary and provide a common framework that is necessary to unite the regular investment world with the sustainable/impact investment world. This integration cannot happen effectively using linear methodologies without causing many unintended consequences.

For example, small groups of well connected investors can make billions investing in new drugs with many side effects and suboptimal health benefits for conditions that are largely based on environmental health issues (such as poor air quality, unclean water, toxic food, and industrial pollution) as well socioeconomic issues or emotional trauma. We spend considerable time discussing the price of new drugs and very little time working on these more complicated issues.  Fortunately, there are many new scientific and technical tools that can help to better define and solve these highly interconnected problems at the root cause as long as the right interdisciplinary teams come together with aligned business and financial strategies.

We have three basic services launching soon that apply our unique business and investment principles: 1) online, multi-media educational services as well as industry, scientific and technological trends research through a variety of ebooks, virtual conferences, webinars/videos, subject specific newsletters, and metadata (for investors interested in applying science and technology to solve hard problems using living system principles).  2) a private company and blockchain/crypto multi-media direct deal room with proprietary research and expert webinars including outside the box thinkers, webinars, and a communications portal (accredited investors and institutions that do direct investing outside of formal fund structures).  3) subject specific newsletters (for a broad accreditation necessary).

Advantages of this rigorous process are numerous such as finding breakthrough innovations earlier and more systematically than other investment approaches, strong financial returns, more efficient and lean business/financial processes, better alignment of incentives for all stakeholders, solving more complex problems at their root cause, solving multiple interconnected problems at the same time, and far superior transparency of both shorter and longer term risks as well as opportunities on a company specific, sector, or other industry, scientific or technological basis.

Shorter term chaos and volatility are inevitable as we migrate from a win-lose to a more sustainable, win-win economic system; however, this ecosystem-based business/investment approach can help to smooth the transition and help to build a better economic foundation that is more fair and inclusive, restores our well-being and helps to regenerate our natural world.

Applying these systems-based, natural sustainability principles to the investment world is a radical paradigm shift, helping to direct how to utilize innovation, entrepreneurship, financial resources and other collaborators to improve the lives of all people, addressing at the root cause:

  • the inhumane disparity of wealth;
  • the lack of diversity and inclusivity in our economic system;
  • the overall destruction of our natural ecosystems, general health, vitality and well-being.

The businesses that pass these business and investment screens are more resilient and more sustainable.

We are in the process of incorporating a variety of technical tools and applications to make this process more efficient and effective.

Examples of our areas of interest:

  • Healthcare (biotechnology, medical technology/diagnostics, digital health and other services)
  • Food and agriculture (from farming, to distribution, to manufacturing, to retail)
  • Ecology efficiency, restoration, and regeneration (alternative energy, energy efficiency, clean water, green building, environmental remediation and restoration, general green/sustainable businesses)
  • General integrative health initiatives and other off the beaten path areas where we identify new ways to empower people to lead more productive, happier and healthier lives
  • New valuable applications of technologies such as artificial intelligence, virtual reality, robotics, quantum technologies…..