Pythia Capital’s Complex Systems Investing Principles

by | Jul 10, 2024 | Our Story

Nothing is invented, for it’s written in nature first. Originality consists of returning to the origin.

— Antoni Gaudí, Origin: A Novel

12 Permaculture Principles

(as described by Bill Mollison and David Holmgren)

Application in Business

(as inspired by Rob Hopkins, co-originator of the Transition Network)
1. Observe and interact 1. Detailed observation of where we are, relying
on primary observation and accredited sources,
not second hand information.
2. Catch and store energy 2. Manage risks carefully, storing excess
reserves, not building beyond what resources can
support
3. Obtain a yield 3. Maximize profit that is productive, fair and
sustainable
4. Self regulate, accept feedback 4. Actively incorporate feedback and look for
negative results
5. Use and value renewables 5. Focus on goodwill and trust; business inputs
sustainably managed; look to nature for answers
(do not replace it)
6. Produce no waste 6. Waste reflects poor design; output from one
system could be input to another
7. Design from pattern to detail 7. Step back and see from a bigger picture;
holistic perspective of how things are
interconnected
8. Integrate 8. Maximize beneficial relationships for a more
integrated solution vs. increased specialization and
compartmentalism
9. Use small, slow solutions 9. Big is not always better; new opportunities are
not always visible or easy to exploit from a macro
level
10. Use and value diversity 10. Monocultures are fragile and prone to disease;
a more vital and resilient community results from a
diversity of cultures, small business, local food and
energy supplies vs. more centralized systems and
globalization. We need to consciously plan our
businesses and investments to find better balance
11. Use edges; value the marginal 11. Innovation rarely comes from the center; it
comes from the fringe thinkers, which are often
excluded and marginalized in typical, elite
business, scientific, and investment circles
12. Creatively use and respond to change 12. Natural systems are not static; always observe
and look for new opportunities and new ways to
manage risk

Bill Mollison
Bill Mollison is renowned as the co-founder of the permaculture movement. His work has revolutionized the way we think about sustainable agriculture and ecological design. For more information on Bill Mollison’s contributions to permaculture, visit the Permaculture Research Institute.

David Holmgren
Alongside Bill Mollison, David Holmgren has been pivotal in developing the principles of permaculture. His insights into sustainable living and ecological stewardship continue to inspire individuals and communities worldwide. Learn more about David Holmgren’s work at his official website Holmgren Permaculture Design.

Rob Hopkins
Rob Hopkins is the co-founder of the Transition Movement, which empowers communities to address the challenges they face by starting local and building resilience. To explore Rob Hopkins’ vision and the Transition Movement, check out his personal website Rob Hopkins’ Blog and the Transition Network.

Pythia Capital’s Ecosystems-Based Investment Philosophy

  • Nature-Inspired Investing

Pythia Capital follows a model of ecosystems-based investing principles that mirror nature’s processes for creating and restoring sustainable agricultural systems. These organic philosophies build systems where humans interact with each other and the environment in more balanced ways.

While this approach may seem idealistic, it offers remarkable and revolutionary principles that are naturally creative, visionary, and empowering. By following nature’s lead, we find win-win solutions to important problems—the only truly sustainable path for society.

  • Leveraging Billions of Years of Evolution

We leverage billions of years of evolution as a guide for creating sustainable businesses within non-linear, complex systems in society. These design principles and processes can be applied to any industry, business, or creative problem-solving exercise.

  • The Trend of Living Systems Investing

In investment circles, there’s a growing trend to discuss social entrepreneurship, venture philanthropy, systems investing, and other value centric investing strategies. While there’s variation in what these terms mean, there’s general agreement that our current winner-take-all, short-term mindset, and money-at-all-cost business models are unsustainable.

  • Ecosystems-Based Design Principles

At Pythia Capital, we resonate with a business and financial process that utilizes ecosystems-based design principles mimicking nature’s processes (also known as “Complex Adaptive Systems,” “Complexity Science,” or “Chaos Theory”).

  • Intuitive, Solutions-Based, Win-Win Approach With Numerous Advantages

– Easier identification of breakthrough innovations
– Better management of business and investment risks
– Alignment of incentives with all stakeholders

  • Permaculture and Complexity Science

We’ve adopted a 12-step process known as permaculture principles, adapting it to our business and financial process. This process is part of the evolving field of complexity science, which leverages interdisciplinary science and computing power to study non-linear, complex systems.

Permaculture principles help build more sustainable and regenerative systems, finding “order in the chaos.” This wisdom is similar to indigenous and shamanic ways of life, modernized into a process you can follow.

For more information complex systems and complexity science: https://www.santafe.edu/

  • Bridging Ancient Wisdom and Modern Science

At Pythia Capital, we consciously integrate wisdom from shamanism, complexity science, chaos theory, and quantum science into our living systems process. Permaculture serves as the bridge between ancient shamanic wisdom and advanced science and technology.

  • Ethical and Efficient Investment Paradigm

This process is more ethical, creative, flexible, iterative, efficient, and effective than existing investment paradigms. Key principles include:
– Alignment of incentives with all parties
– Active collaboration with diverse, interconnected groups
– Efficient processes
– Slow, iterative approach

  • Developing Tools and Applications

We are developing various technical and analytical tools and applications to make the process more effective and efficient.

  • Our Founder’s Journey

Lynn Marie DePippo, our founder, discovered her natural ability to process information and analyze using this system-based methodology during a weekend symposium at the University of Massachusetts, Amherst.

  • Permaculture Design Principles

Bill Mollison and David Holmgren developed the permaculture design principles to describe an “integrated, evolving system of perennial or self-perpetuating plant and animal species useful to man.”

  • Applying Permaculture to Business and Finance

While it may seem unusual to apply a sustainable agriculture system to business and finance, these principles are applicable to any situation requiring the study of interconnected, interrelated complex systems.

  • Money as Energy

In this process, money is viewed as a source of energy, not a tool for power, status, or greed. It’s integrated into the creative process along with everything else.

  • Starting Small and Staying Lean

One of the best aspects of this approach is that you can start small, applying these tools to simple businesses or projects. It’s about creating a vision, aligning it with strong intention, and taking action one step at a time. You can see some of the lean business and agile product development in these natural principles. That is because we are all inspired by what is organic and natural when creating products and services that have intrinsic system value. The big difference with our principles is we focus on adding these principles to the investing process itself and not just to the product or business development.

Relative to how lean business development relates to our complex systems investing principles: it is where lean/agile business meets complex systems investing for more breakthrough opportunities, more systemic value possibilities, significantly better risk management, better resource management, less pollution/waste…

For more on ”The Lean Start Up” model: 1) http://theleanstartup.com (Carl Ries); 2) https://leanstack.com/leancanvas (Ash Maurya); 3) https://www.slideshare.net/sblank/customer-development-at-startup2startup (Steve Blank)