igniter exploration deck

Exploration Deck

A conversation primer in the exploration of practical

approaches to transformative venturing and investment.

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 License. (Michael A. B. Lewkowitz - Igniter Incorporated - [email protected]) 2

Common experiences in venturing call for new approaches

• Common experiences:– The earlier the stage, the less applicable

or effective conventional management practices tend to be

– The deeper the level of system change being sought, the less effective conventional planning approaches tend to being

– The ‘earlier’ and ‘deeper’ the venture, the greater the influence of the values and style of key stakeholders and leadership

• Essentially, transformative venturing is about creating a stable state far from equilibrium.


• Venture investing involves 3 forms of capital– Financial– Social– Intellectual

• In the overlaps there is leverage– financial + social = ?– financial + intellectual = ?– social + intellectual = ?

• At the centre is the fulcrum where the most powerful approaches will be found– financial + social + intellectual = ?

Venture investing involves much more than just dollars

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 License. (Michael A. B. Lewkowitz - Igniter Incorporated - [email protected])

Look ‘early’ and ‘deep’ to develop the most applicable approaches

4


Initial observations in transformative venturing

Challenge is to employ capital (all forms in synergy)

as a productive catalyst

Requisite Conditions•Basic financial stability•Core competency coverage

Readiness indicators •Trust•Clarity•Momentum

Accelerating conditions•‘Venture vortex’ alignment•Active, appropriate network


Initial thoughts on practices for transformative venturing and investing

Conventional Strategy

Systems Strategy

Transformative investment practice*

Intellectual •expert advice•directive

•wisdom in community•co-creative engagement

1.“Venture Votex”2.“Viable System Model”

Financial •invest in plans•seek surety•control risk

•invest in conditions•create space•comfort with unknown

3.“Deal Day”4.“Seed stability fund”

Social •directly managed•linear•referral based

•dynamic•fluid•interconnected

5.“Iggy-Active Network”

* Further explanation on the following slides.


Practice 1:“Venture Vortex”

• A comprehensive venture alignment framework– Frames questioning– Describes

interconnection– Aids in due

diligence and optimization

• The greater the alignment of the venture, the greater the efficacy of the investment


Practice 2:“Viable System Model”• Developed by Stafford Beer• Systems science of

organization– For business system

diagnostic and design• Core principles for

designing and organizing a venture to fulfill a purpose– Wikipedia

• http://tinyurl.com/3cfyz9

– Highlights on Igniter blog• http://tinyurl.com/23v7yt

http://tinyurl.com/3cfyz9

http://tinyurl.com/3cfyz9

http://tinyurl.com/23v7yt

http://tinyurl.com/23v7yt


Practice 3:“Deal Day”

• A co-creative approach to deal structuring• 1 day session with venture team, investors, and key

community members– Review and update Venture Vortex alignment assessment– Determine venture condition measures and activities

• Requisite conditions– Basic financial stability– Core competence coverage

• Accelerating conditions– Venture Vortex alignment– Active and appropriate network

– Structure deal to most catalyze venture conditions and take advantage of the clout in the investment process

• Recognize capital’s clout as attractor, influencer, and enforcer


Practice 4:“Seed stability fund”

• First, and foremost, ensure plan for basic financial stability– Financial capital

• Basic cash-flow break-even, or• Sufficient to achieve crtical milestones that will enable next round funding

(also sufficient time to close funding)

– Social capital• Key connections and relationships related to the above milestones

– Intellectual capital• Venture Vortex alignment to focus in on core activities and identify key

milestones, activities, and resources• Shared experiences from venturers that established basic financial

stability

• Second, and possibly in parallel, additional capital can be applied for investment in accelerating conditions


Practice 5:“Iggy-active network”

• Whole portfolio network activation– Leverage social capital from past investments– Enable social capital sharing and leverage among the

investees• Supported through online network development

– LinkedIn• Document work history on behalf of investees’ key personnel• Encourage them to connect their network

– offers the network of entire portfolio and their networks to their contacts

– Social networking community platform• E.g. Ning + del.icio.us (or Twine)• Shared learning... intelligence... consciousness...

– Pro-actively leverage for• Deal flow, due diligence, specific capital/resource support requests

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 License. (Michael A. B. Lewkowitz - Igniter Incorporated - [email protected])

Process of exploration

• Those who are on ‘the frontier’ of transformative venturing and investing have a wealth of experience and observations that have yet to be articulated and turned into practice– Step 1: explore and articulate that wealth

• Series of intentional conversations with investors on ‘the frontier’

– Step 2: transform insights into implementable practices• Some initial concepts have been presented in this deck

– Step 3: just do it - put it into practice• Currently envisioned as small, dedicated, time-limited experimental fund

(e.g. 5 investments, 18 months)

– Step 4: revisit and.. repeat?

12

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HERE


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✴Observing change first hand for over 40 years with affiliates in 36 nations.

Mission: To enhance people’s capacity to participate in the creation of a more human world through training in group

facilitation and leadership methods, and facilitating community and organizational development.

An accomplished venture builder with over a decade of experience founding, advising, professional investment, and

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✴Founded: 6 ✴ Incubated: 2✴Funding raised: > $6M ✴Managed: 3✴Advised: 5

Mission: To co-create a comprehensive example of the

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Exploration guides

Exploration Deck

A conversation primer in the exploration of practical

approaches to transformative venturing and investment.

igniter exploration deck

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