Umair Haque Edge Economy RSS Feed

An Open Challenge to Silicon Valley

7:42 PM Monday April 28, 2008

Tags:Financial crisis, Recession, Strategy

I haven't been posting a lot lately. Why not? I've been talking to lots of people - about a topic that is perhaps worth discussing here.

There's growing awareness of a disturbing incrementalism gripping Silicon Valley. Here's a nice article by Jeff Nolan about it, with follow-on discussion by Tom Foremski;. in a strikingly similarity to my comments over the last few months, Tim O'Reilly recently opened the Web 2.0 conference by asking entrepreneurs to solve bigger problems.

What's really going on here? I think the malaise is deep and systemic. Many of you may disagree - but I'm vastly disappointed in the moral and strategic bankruptcy of today's crop of venture investors and so-called revolutionaries.

There are huge shocks rolling across the global economic landscape. Here are just a few. Food prices are skyrocketing. The financial system is melting down. Energy, of course, is more and more toxic, and costly. We are all, make no mistake, dancing on the precipice of economic cataclysm.

It is the obligation of radical innovators to create new value by solving these problems - or cede capital and resources to those who can.

But today's revolutionaries are sheep in wolves' clothing. They're lost in the economically meaningless, in the utterly trivial, in the strategically banal: mostly, they're cutting deals with one another to...try and sell more ads. That is, when they're not too busy partying. .

I hate to say it - but this abdication of responsibility is an act of moral bankruptcy and moral hazard. It's a betrayal as deep, perhaps, as that of Wall Street. Not just of those across the globe who are suffering - but also, in the sterile language of yesterday's economics, of their own limited partners and shareholders.

Why? Simple: given their magnitude, it's by solving exactly these problems that the most explosive amounts of new value can be created.

Today's crop of investors and startups are perhaps even more economically autistic than megacorporations. Too many are willfully blind to today's deepest and most essential strategic truth: that the path to radical value creation isn't cutting more deals (dude, high-five!!) - but in rebuilding a flawed, false global economy: one which actively transfers wealth from the poor to the rich, from the sick to the healthy, from productivity to cronyism.

And that's why the failure to address these problems is a strategic bankruptcy as well. The self-indulgence of today's so-called revolutionaries in a darkening economic twilight is a recipe for strategic suicide.

So here's my challenge. If you're a revolutionary, then be one: put your money where your mouth is, and fix a big problem that changes the world for the better - if you really have the courage, the purpose, and the vision, that is.

In fact, I'll happily put my money where my mouth is. I think these problems are so important, I'll take a bit of time away from setting up my new lab, to advise five startups, funds, or companies that I think have the greatest insight into fixing them - you know how to get in touch with me.

I'll be posting more about how I think these problems can begin to be solved in coming days. For now, fire away in the comments and share your thoughts - it's a discussion that, perhaps, more of us should be having.

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Seriously, we can do MORE from Deborah Schultz:
Update 5/5: - Umair has a nice discussion going on over here that started right after I spoted this - it must be in the air! I promise to do a follow-on post as my post seems to have struck More

Tracked on May 5, 2008 17:40

Innovate or Die from JasonKolb.com:
Umair Haque recently wrote one of the best posts I've read in a while. He expresses some of the same thoughts I've been having recently:I haven't been posting a lot lately. Why not? I've been talking to lots of people More

Tracked on May 5, 2008 21:12

Comments

Umair, if you're serious about all that, you should talk to Robert Rapier ( http://i-r-squared.blogspot.com/ ).

He will be able to direct you to companies trying to rescue us from our fast-approaching and sever energy crisis.

Julien

- Posted by Julien Le Nestour 
April 29, 2008 9:14 AM

Umair,

This is an great post, and it is outstanding that you are willing to be a part of solving the problem.

- Posted by Nnamdi Udezue 
April 29, 2008 11:14 AM

interesting commentary on this article here:

http://news.ycombinator.com/item?id=176608

There is a real call for specific examples, so we are looking forward to them.

- Posted by John Hogarth 
April 29, 2008 2:19 PM

this is a long standing problem, converting idealism to pragmatism

ecology guys, solar guys, natural food guys, responsible investment guys, sustainability guys, all working and researching and speaking since the 1970's

the business and politics guys don't care, their game is a different one, narrowly focused on short term profit, greed in action

this is human character, and i don't think cheap communications will change this

there is a quote from 1970, general giap, north vietnam, that goes something like this... "ah, your computers .... your computers merely serve to render your ignorance more efficient"

to take the ideal into the realm of the pragmatic requires a change in context, in the understanding of what it means to be a human being.

his is a long standing problem, converting idealism to pragmatism

ecology guys, solar guys, natural food guys, responsible investment guys, sustainability guys, all working and researching and speaking since the 1970's

the business and politics guys don't care, their game is a different one, narrowly focused on short term profit, greed in action

this is human character, and i don't think cheap communications will change this

there is a quote from 1970, general giap, north vietnam, that goes something like this... "ah, your computers .... your computers merely serve to render your ignorance more efficient"

to take the ideal into the realm of the pragmatic requires a change in context, in the understanding of what it means to be a human being.

can you do that?

- Posted by gregory 
April 29, 2008 2:27 PM

The valley is plagued by me-too's and one ups, possibly because thats what's being rewarded. Look, every me too gets coverage on TechCrunch and all those aspiring entrepreneurs are somewhat left to think thats where the money is. Imagine if TechCrunch, AlleyInsider, and the like, decided they would start publishing more stories about radically different companies who are trying to change the world (ie: eco-safe.com).

Why? It's in the DNA. The Valley is made up of it's environment and core needs:

1) Venture Capital
2) Eyeballs
3) Buzz
4) Fame
5) ETC...

You "water what you want to grow" and the valley has "over-watered the silicon".

- Posted by Caylin 
April 29, 2008 3:12 PM

Hey Umair. Fantastic post. Dropped you a line about advising eduFire. Education is a $2 trillion industry in dire need to some serious revolutionizing.

- Posted by Jon Bischke 
April 29, 2008 4:41 PM

@Umair -

All these start-ups are market entities and they play by market rules. I think your frustration is directed more towards market makers. Startups, with average employee count between 2 to 20, are still pursuing innovation ( because for them there is no other path anyways) and they are also way down the food chain to have any convincing claim to solve world hunger or global warming. Even if they have they will be known to the world in post-success phase.

I largely agree to your concerns but this problem is not just limited to Silicon Valley. Also this is not the first time that right capital is chasing wrong sector. We have seen that movie many times.

@Caylin - Media has it's own financial objectives (they are also business!) and will pursue stories which are popular and not necessarily important or relevant to global issues.

- Posted by Brij Singh 
April 29, 2008 5:00 PM

Hi Umair,

I very much admire your offer and think I have an idea that may qualify. However, I -don't- think I know how to get in touch with you. I submitted an email through the Havas Media Lab, but haven't heard anything back.

Would you be willing to email me back with the best contact info and I will email the outline.

Cheers,

Jonathan.

- Posted by Jonathan Dean 
April 29, 2008 5:29 PM

Umair -

First, thanks for this. My favorite post yet.

This is probably not the appropriate forum, but I'll throw it out there anyway...

As we slower folks work to wrap our heads around this new economic reality you describe, I was wondering if you would be willing to create a "recommending reading" list that would serve to build out the framework on which your theses are developed? Perhaps a "Listmania" entry on Amazon?

- Posted by Geoff 
April 29, 2008 5:43 PM

web 2.0 is lost somewhere between over-hype and under-the-radar cool

Lack of:
- bus-mod-inno - apart from skewering eyeballs
- cross-industry foresight - rudimentary
- deep consumer insight
- real world examples which capture breadth (cross-industry) application
- selection of strategic frameworks megacorp can use
- intent "no value on steroids" **read as strategic purpose**

Partly responsible:
- Media companies adding to noise. CMOs stuck in constant 'campaign' mode. Obsessed with engagement and conversation. Ironically, (altho' important) distorts the bigger picture (groundswell book? - sorry Charlene Li - this just adds to the noise). Ain't revolutionary
- VCs can only invest and grow what is around. techie kids building social media toys).

Transformation requires:
Imagination
Passion
Courage
Humanity
Humility
Intellect

our 'gutenberg' moment has passed - we just need to kickstart the new renaissance

Talking about revolutionary moments - during a fone conversation with my 60yr old Mother (earlier) she mentioned
"Sunday mornings used to be associated with PJs, coffee & chocolate.....That was before...Facebook...!"
I was left **stunned** and scared. Now that is REVOLUTIONARY!

btw, great piece and i still remain a card-carrying member of the Holy Church of Umair Haque ;)

good luck w/ silicon valley **coughs**

Ray

- Posted by ray 
April 29, 2008 5:55 PM

Mr. Haque,

While I certainly can't claim anything like your broad view of the areas of innovation, I tend to agree with you on several of your points. I won't mention any names, but I was shocked several months ago after reading various articles on VC funded startups that received large sums of money for ideas with no potential or focus to improve much of anything substantial.

I would like to contact you, but I just came across your blog after it came up in my RSS reader. Please do give us a bit more information.

Kind regards,
S. Grove

- Posted by Sean Grove 
April 29, 2008 8:40 PM

OK, maybe I'm being a little bit too Atlas Shrugged here, but I don't think that the only way to solve the big problems you're suggesting is to attack them directly. The revolution in search has enabled efficiencies. We're only beginning to see the ripple effects of easy access to information. Another example might be Moore's Law and the microprocessor. Whether an exponential increase in computing power is motivated by weapons, games, or genome research, everyone will benefit.

I certainly agree that many Silicon Valley companies live in an echo chamber and "revolution" is tossed about with abandon. On the other hand, what seems ordinary today might prove to be the foundation of a revolution in 10 years.

I'm motivated to get up for work every morning because I work for a company with an exciting mission, even if we're not directly going to solve global hunger problems. Powerset, a company founded on natural language processing technology, has the potential to (someday) change the way that humans interact with computers, by making computers understand our language. How can that not seem revolutionary?

- Posted by Mark Johnson 
April 29, 2008 8:42 PM

Mr Haque;
I was just reading thru my Google Reader feeds when I saw your challenge. I have to say that I am very much impressed with your offer, and if I were one living/working in Silicon Valley, then I'd probably be right at your door right now.

However, the latter aspect is not the case. I live in Charlotte, NC; and my heart is to teach people how to use mobile technology effectively - specifically non-profits, educators, and those in religious vocations. These are the people who are already at work trying to solve elemental problems, and I believe that the technology we all use should be empowering to them to have this happen. I've started a consulting company called Inner-Linked (http://inner-linked.com) for the purpose of doing this.

If the rules of your challenge weren't limited to Silicon Valley (and I totally agree with the reasoning why you have); I'd love to be one to pitch to you that what you are offering is exactly what someone like myself needs in order to make that change to address the real needs of our communities.

I wish you best of blessings on this nevertheless. I'm going to do my best to keep tabs on where this leads, and how many others follow in your footsteps.

- Posted by Antoine 
April 29, 2008 10:18 PM

Umair,

I really enjoy your posts and the focus of your discussions, but... what Soros said in the story you reference is simply that he feels the economic bottom isn't in yet and that recession is still coming. Did that really deserve the anchor text "economic cataclysm" ? :)

Paul

- Posted by Paul G 
April 30, 2008 12:49 AM

We need a digital conduit that captures human subjectivity and intention. Sharing and leveraging our individual thoughts will jump-start innovation and knowledge integration, e.g.:

http://www.imindi.com/journeys/465-color/maps/3196417-blue

Would a web spider create that? The richness inside our heads has only begun to be utilized.

- Posted by Galen Kaufman 
April 30, 2008 2:48 AM

comment above by Mark Johnson - nice and true. The Powerset plug set aside, your logic is core and if history is any indication, whether it be math to physics to the spoken word, any technology that enables interaction is good if not great.

Web 2.0 will not go down in history as some blip; it has enabled interaction at a revolutionary pace. Some of these interactions are, without a doubt, engaging in dialog to solve these problems that this author has so chosen to pivot in his call to arms (and may we add, in Web 2.0 finesse...in a blog). Go to Africa or places in Asia to find, to what exciting and rewarding degree, that even mobile phones have allowed people to exchange ideas, change opinions, seek solutions, do business, and yes - create revolutions.

Now if we could only create one interface for us to understand machines rather than billions, all with their own programming, trying to be understood by a few who just don't realize that the machines are far more logical...

- Posted by PK 
April 30, 2008 4:36 AM

Umair, your post served as a good reality check. Thank you.

Advertising-supported business models only work when economic times are good and ad budgets are flush. It will be interesting to see if our recessionary environment forces us to look at different models and puzzles tomorrow.

- Posted by Allan 
April 30, 2008 4:58 AM

incrementalism is in every industry, fast food, hollywood, television, transportation, banking, fashion, pharmaceuticals .... moral decay? ok...

value can be created by doing something different? sure, and at what odds? far beyond those that are labeled acceptable risk for investors, or it would be happening.

changes, evolution, transformation are always incremental, the best example is nature, one big adjustment machine going step by step.

we as a global culture are involved in an evolution, no doubt, and the old ways fall away, new ways are born, it is natural, been going on forever. you are doing your part, describing people as morally bankrupt, offering to help people create a better way, nice, a messiah pointing the way.

but something is missing, maybe it is so simple as compassion, the first requirement of a leader

- Posted by gregory 
April 30, 2008 5:19 AM

Most of Web 2.0 users are just waisting time in a way which is revolutionary for console and video games users (passive->active), but it's not for the multitude of Web 1.0 communities which are exchanging ideas, producing materials, interconnecting themselves for twenty years now.

What we lack (and what we've tried to do) is give 2.0 TOOLS.
Something that the "normal" user has never used because:
1) It's too expensive
2) It's too difficult
3) It's not 100% free, even for personal use

To transform the Internet we don't need to duplicate real life with poor experiences, but improve our real life with tools that were never accessible before and thus creating new concepts, new ideas, new realities...

- Posted by Marco Ghirlanda 
April 30, 2008 8:38 AM

@Gregory. Thanks. As it relates here and to the broader canvas. Checking your compassion. Like checking your oil.

- Posted by Crawford 
April 30, 2008 9:29 AM

Dear Umair,
What if the real revolution does not come from SF but from another part of the world? Let's say for example Greece! Greeks have already invented the civilization we live now and through some breakthroughs ideas we can make it happen again! Are you willing to join such a Greek Start up?

- Posted by johnyzar 
April 30, 2008 10:01 AM

Umair -

Solving big problems takes time.

We are a build quick, flip quick society so those are the companies that are built.

More significantly, our societal DNA has been permanently modified to 'fast' regardless of the short or long term implications. Coffee - get it to me faster. Lunch - faster. Meeting - faster.

It isn't a coincidence that the faster things move, the larger the problems. No one takes the time to firmly establish a foundation that won't crumble from fast b/c it isn't easy or quick to do.

Sadly, this is a fundamental DNA problem and, to paraphrase Lisa Simpson, it isn't possible to "change our genes by sitting on top of a microwave".

- Posted by Chris 
April 30, 2008 10:17 AM

Here's one for you, I am not sure how practical it is and I am sure it is full of holes, but who knows:-

A true social network site, not networking I hasten to add. This one is based on an exchange of information between people in the 'first' and 'third' worlds.

Computers are becoming more widely available in poorer countries whether at internet cafes or OLPC type ventures.

People from around the world sign up and offer whatever skills/knowledge they might have in a pool. People are then matched with each other.

Say for instance a child in a poor country has monthly access to a computer connected to the internet. Maybe the kid is bright and wants some extra tutoring in say mathematics that the local school cannot offer. On the other side of the world super smart geek in San Francisco wants to offer his or her skills at teaching maths. This site would match the two and allow them to make contact with geek teaching young kid something they cannot get locally. It could be done on an anonymous basis if people are worried about security.

The same could work for say a water engineer who could offer advice to a deprived community on how to pump water.

Or perhaps people in poorer countries could offer advice to wealthy western tourists as to their local area. The westerner would get this information by applying credits which are then allocated to the local community projects.

I am sure this idea is shot through with bad ideas but I am sure there is a kernal of an idea in there somewhere.

- Posted by Liamh 
April 30, 2008 11:32 AM

My startup, Embought (www.embought.com), is a shopping search engine that donates 50% of all it's profits to charity. The idea is to redirect some of the money from all of our online purchases to people around the world who really need it. I have only recently launched the site but I have received a lot of enthusiasm from everyone who has seen it.

Please consider Embought for one of your 5 startup slots. I believe that Embought could help, in a small way, to redirect some of the wealth that the rich squander to those who most need it.

- Posted by Brandon Pollet 
April 30, 2008 1:41 PM

Incrementalism is by no means endemic among us SV entrepreneurs. It naturally raises its head when recruiting resources because "new ideas are judged by old knowledge." Luckily, the valley is full of intelligent iconoclasts with success under their belts and resources at their disposal. Finding and gaining the interest of these people separates a "person with an idea" from an "entrepreneur with a startup".

Vada

- Posted by Vada Dean 
April 30, 2008 1:41 PM

I completely agree.I live in Arizona, where these trivial ideas stand on their own or die. This does remind me of the last bubble, in which too much money produced madness.

- Posted by francine hardaway 
April 30, 2008 3:54 PM

Umair,

Interesting argument. I agree that living around the valley one is reminded of a circle jerk sometimes. But I think the solution for redistributing wealth must come from figuring out how to make that redistribution fair. For example, my bank, Washingon Mutual (and I'm sure most other banks) targets poor people with overdraft protection, and then charges them $30 each time they use it. Quite profitable when the best way to actually take care of their customers would be to simply decline their debit card, or to give them a call and say WTF? I talk about banks because they are the old economy, and they help expand the gap between rich and poor in this and other ways, unfairly.

But then look at Google, where your small business can compete not just in a geographic niche but an interest niche. Awesome if you have the creativity and energy to start a new business. But what if you're in an old business? What if you're a trucker? Or in the construction industry? These are relationship industries, primarily, and the money goes to the truck brokers with the most relationships, not to the drivers who do the work.

What if you had a way to let an owner operator compete based on his on-time ratio? Or his breakdown percentage? Or a way for a small contractor to differentiate himself based on how often he comes in under budget and how happy all his customers are, not just the ones the ones who talk.

I think there is much to be done in terms of developing tools that allow the small business to compete. I look forward to reading the rest of your posts on this topic.


-- Fred

- Posted by Fred Schoeneman 
April 30, 2008 3:57 PM

If you can find another organization that's had a bigger impact on the price of food for more people I'll buy you dinner (or a pint in The Volunteer)

http://solutions.irri.org/

Some of the world's problems will not be solved in Silicon Valley or by startups in the private sector.

Paul

- Posted by Paul O'Nolan 
April 30, 2008 5:11 PM

Umair, i will tell you the NEXT 2 big things:

1. New E-commerce Model (2 trillions market and really change the world paradigm)
2. The Miracle UP Search (20 billions market and much power, it's not about try and sell more ads)

But faith or trust me? ..., like my patent request 5 years before start the famous and global Earth Products from Google, Microsoft and Yahoo!
So, "don't worry, be happy!":-)
Cheers!!!
Carlos

- Posted by Carlos Lagemann 
April 30, 2008 7:53 PM

Mr. Haque, this is precisely why I started http://www.maxgladwell.com. Thank you. Looking forward to more. The time is now.

- Posted by Max Gladwell 
April 30, 2008 8:34 PM

i thought it was timely reading you article after seeing this article in mother jones:

http://www.motherjones.com/news/feature/2008/05/the-seven-myths-of-energy-independence.html

about the seven myths of energy independence. one myth the author presents is:

Myth #5
Some Geek in Silicon Valley Will Fix the Problem

i tend to agree with the author of the article that the silicon valley fix is a myth, at least when it comes to energy work and environmental sustainability work. but i think silicon valley can be doing a lot more on that front than it is right now.

- Posted by omar 
May 1, 2008 12:16 PM

The trouble with this kind of post is that without outlining specifics, it comes across as a "the entire world is behaving irresponsibly except for me."

As economics often preaches, investors are rational. The trouble with the projects you'd like the venture community to tackle is that at scale, they look like traditional steady cash flow businesses, after an initial ramp. These projects aren't too dissimilar from project finance work. Yet they carry all the risk of early stage startups - technology risk, market risk, product risk, execution risk. When you're confronted with two business plans - one that contains all the risk outlined above, but where growth could be 100% yoy (into and past the IPO stage), and another that flattens out and looks more like a steady cash flow business, which would you fund?

Someone - and this someone usually comes from the entrepreneurial community - has to show investors that doesn't need to be the case. You can build disruptive, high growth businesses and solve these sorts of problems. Can it be done? I don't know. Does the world need it? Absolutely.

- Posted by hussein 
May 1, 2008 1:24 PM

Umair,
It would be great if you or someone else here could like to a listing of what the worlds biggest problems are as well as any thing that cross references efforts by companies or communities to solve these problems.

I'm sure there are plenty of niches in this and that therin lies business oportunities. Any starting sites/resources for your readers?

- Posted by Marc 
May 1, 2008 6:26 PM

Umair,

A lot of innovation doesn't start or end in the valley. There definitely are those who follow trends to make a quick buck and to party with pretty people; but that is nothing new.

Your essay is a challenge and I applaud you for making it. But if the valley leaves a distaste in your mouth, look elsewhere. Many of us who have commented are individuals pushing into areas we think are important, and we are doing so (for better and for worse) outside of the rat race that resides in the valley.

Thank you for the challenge.
Adam

- Posted by Adam Greene 
May 1, 2008 11:51 PM

It shouldn't be surprising that the computer industry appears to have lost the ability to address the large problems. This is, I think, a natural and expected consequence of the industry's maturation. The same has happened with other industries in the past and will undoubtedly happen with new industries that we can't foresee.

When an industry or technology is new, those who work on its development are forced to put a great deal of effort into discovering the essence of what they are building and trying to understand what problems can be solved by their work. These people, no smarter than those that follow them, are forced to think about what they do in ways that those who follow need not. The original developers view the future as a "greenfield" of opportunity and thus see more easily the connections between capabilities and needs. Later developers view the same future but through a thicket of already developed and deployed systems. The vision of the later developers is clouded by the distraction of many, many existing uses of the technology. The later developers, constantly aware of many, many opportunities to solve problems in the tremendous number of existing applications, find it exceptionally difficult to see past immediate incremental opportunities. The earlier developers aren't so encumbered.

This will sound odd to many, but I suspect that the people who are most likely to be able to tell us how today's computer technology can revolutionize our future are the "old folk" who are now rapidly retiring from the business. It isn't that the "old folk" are any smarter than the new kids or even that they have more experience, rather, the old folk may simply be able to remember the still-undeveloped applications that they dreamed of back in the day when the field was less cluttered. The most important question you can ask a computer industry veteran is: "What have you never found time to build?" They will often tell you about something which would be totally new or revolutionary if built. Ask the same question of someone newer and they'll list dozens of incremental extensions to existing systems... (Once again, it isn't because the older folk are smarter or more experienced. It is simply that they were lucky enough to be thinking about the business at a time when it was easier to see the essence of the technology.)

Technology and industry development is "path dependent"... What comes next depends largely on what has come before. But, when there has been little before, the history of the business has little influence on its future -- the future becomes, to a large part, what we dream it to be. As experience accumulates, the future becomes more and more defined by the past -- the future becomes one of incremental rather than revolutionary changes. Note, however, that the shift from revolutionary to incremental improvement is not something inherent to the technology. It isn't necessarily the case that we have exhausted the raw capacity of the technology to create new revolutions. Rather, the shift to incrementalism comes as a natural consequence of changes in the "way of thinking" of those in the business.

There are probably people out there who know just how to "solve" the problems that face us. The problem is that we keep expecting the "young" to have the solutions to problems that they can't even see...

bob wyman

- Posted by Bob Wyman 
May 2, 2008 12:38 AM

I think the big ideas that are needed are new virtualizations. For example fire virtualized sunlight, electric lights virtualized fire, phonograph and later video recording virtualized time and space and performers. Telephones virtualized distance. Computation virtualized thought processes.

These can be incrementally improved and when they are converted into digital format, they can be reproduced at virtually no cost and made abundant for all.

The next huge innovations will be new virtualizations. What has not or needs to be virtualized? Look at what costs the most money or is the most scarce and you have a good clue since there is something adding to that cost because the object or service has not been virtualized and digitized.

- Posted by John B 
May 2, 2008 12:43 AM

Dear Mr Haque

Thanks to my colleague Dr. Lilly Evans [http://www.linkedin.com/in/lillyevans], I received your challenge from Sarah Perez [http://www.readwriteweb.com/about_sarah.php].

Could you possibly extend your thinking to include 'old Europe' for an IT-based renaissance?

Can you imagine that a mature woman rather than a young entrepreneur comes up with the deep innovation that you're after?

Would you consider a new "instrument for investigation" and new "decision making platforms" worthy of your attention?

Would you appreciate viewing the links between "time" and "money" through new glasses?

Would you consider the creation of "multi-scale portals" to investigate science, finance and economics as the kind of innovation that you're seeking?

Then do send investors my way, please. But not VCs. In the spirit of Nobel Peace Prize winner's Dr. Yunus "Social Business and the Future of Capitalism" I'm looking for social business angels.

Looking forward to hearing from you and/or possibly any of your bright commentators,

Sabine

www.3dmetrics.co.uk [just being brought up to speed after two years of seeking "strategic co-developers"]

- Posted by Sabine K McNeill 
May 3, 2008 4:45 AM

Dearv Umair,
A very thought provoking post.
With Warm Regards

- Posted by Debashish Brahma 
May 3, 2008 7:49 AM

As hussein suggests, solving imminent world crises isn't necessarily a startup-friendly goal. Even Google, whose global impact is indisputable, has been a drop in the bucket. Only now that they have a war chest can they consider problems on this scale. Much like David Shaw is diverting funds from his hedge fund (D. E. Shaw) to fund basic research in computational biochemistry to aid drug discovery.

When we started Endeca, our goal was to take over eBay by making it easier for users like us to find things. We never did get around to taking over eBay, but we did revolutionize information access. Today, when I use Endeca-powered sites to find information, I feel proud of being part of the solution. And when our technology falls short, I feel responsible for making it better.

True entrepreneurship is about taking on a big problem that you care about. Yes, you have to have good enough taste in problems to pick ones that have impact beyond yourself. I suspect that many of the banal startups Umair complains about are simply not motivated by passion.

- Posted by Daniel Tunkelang 
May 3, 2008 9:46 AM

There is no shortage of problems in the world and I think many of us (including my company) is guilty of thinking too much about entertainment and goofing around. Having said that, I think we also have the opportunity to use what we are building to help people connect with each other and that, properly applied, can have tremendous value. I'm talking about a deeper understanding of your fellow human beings which is the start of compassion and change.

You know what we are building at favequest since we've had the chance to talk directly in the past. Like any platform based product, we can direct it to do many different things that are not obvious at first. I would love to work with you on this. You'll be hearing from me.

BTW, I sent you an email about a month ago and didn't hear back and now got a bounce back from the email you publish on your bubblegen site (the one with mba2003 in it).

- Posted by allan isfan 
May 4, 2008 8:44 AM

curious to know what you think about Pangea Day http://www.pangeaday.org/index.php?

I'm pretty excited about it and have organized an event at my place to watch the films with my closest friends. Of course, it could be that absolutely nothing comes of it but it is worth a shot.

- Posted by allan isfan 
May 4, 2008 9:21 AM

Everyone,

This post has opened a stream of thought I want to share ... apologies for hogging the comments.

I'm not sure if the implication of the original post is "anything worthwhile must solve huge worldwide problems". If it is, I don't agree.

By that measure even the almighty Google would fail to measure up. Did we really need a better search engine? Don't get me wrong, it is the only one I use ... but still. How about Apple ... is it that important to be able to carry 5000 songs with me everywhere I go? I have a new iPOD touch one and enjoy it but it certainly doesn't change the world. I enjoy Facebook but has anything truly worthwhile come out of it? Absolutely not! How about Twitter ... I really enjoy that too and I think it has the power to connect in new ways. But none of these measure up to the "must solve huge wordwide problems". Solve a big problem for someone ... that I can buy into.

- Posted by allan isfan 
May 4, 2008 10:08 AM

Great post!

Everybody loves web candy, and web 2.0 sites are the sweetest. The minute I tell people that I build real software, not the kind that is accessed from a browser, I get that 'pity you' look. The idea of using pictures and photos on colorful maps with driving directions is all that catches peoples attention these days.

There are enough real world problems to be solved, if people just look around. Thats how we started our tiny micro startup lytecube.com

- Posted by Girish 
May 4, 2008 1:43 PM

Umair, have you heard about Celsias.com?

Celsias is a New Zealand based global community website that helps people discuss Climate change, then create and manage projects to reduce global warming. Helping to cool the planet one project at a time.

http://www.celsias.com/

I would be happy to make an introduction to the company founder.

- Posted by Paul Spence 
May 4, 2008 8:17 PM

The real problem is Silicon Valley has become myopic and insular and the results is more of the same social this or that which is rightly identified by Umair. I am sure and I know revolutionary ideas lay beyond Silicon Valley, but how many VC actual look beyond the valley? So is there any wonder we get incremental innovations and stale ideas?

Ironically the Internet is fostering ideas and knowledge transfer all around the world yet most Silicon Valley VCs/Investor seems to think that all the world's brain power and vision reside in their tiny little backyard or at most a couple of places we have offices and nowhere else.

I guess they don't use the Internet or they are not willing to prop up our failing airline industry by traveling to an startup located outside of their backyard.

The question I would pose to Umair and any other adviser/VC are you willing to step beyond your geographic area in pursuit of change the world ideas?

If VCs are not willing to pursue ideas where it might take them, expect more of the same and the eventually Silicon Valley bubble 2.0.

TJGodel
Washington, DC

- Posted by TJGodel 
May 5, 2008 6:01 PM

These have multiple efforts by others more than myself. Please let me know if you'd like more info.

1. Bringing the Internet, news and information to underserved communities.

2. Reducing deaths from methadone and prescription drugs. Poisonings, mainly overdoses, are now the second-leading cause of deaths by accidental injury in the United States. Multiple projects by myself and others.

3. Fostering replacements and supplements for the traditional news media, which should undergird democracy, civic life and solutions, but it is undergoing seismic forces.

- Posted by Maurreen Skowran 
May 6, 2008 3:01 AM

Actually Umair,

I don't know how to get in touch with you. It's my first time on the site. If possible, can you please reply to the address I provided.

My existing site tries to let anyone, anywhere make money. I have over 1500 people now using the site in its current (substandard) condition. At this moment, the site is in redevelopment so it may not be the best time for suggesting changes. I could sure use your help, though, once the new release is out and we get a look at the stats.

Hope to hear from you soon.

Rob

- Posted by Rob Noyes 
May 6, 2008 9:53 PM

Hello Umair,
I am very interested in this conversation you are having. As a web developer I am very inspired, and have a application that is ready to be used for the "Good". Can you please contact me off board so I can show it to you and get your feed back on how we can use it to MAKE a Difference.

Cheers,

Taylor Moore
www.codewithcause.com

- Posted by Taylor Moore 
June 24, 2008 5:33 PM

@Brij Singh

I disagree with your statement:

Startups, with average employee count between 2 to 20, are still pursuing innovation ( because for them there is no other path anyways) and they are also way down the food chain to have any convincing claim to solve world hunger or global warming

There are small groups of individuals like the founders and operators at Kiva that are making a different using social technology for change. It can be done.

It's not about what one person can or a few people can do. It's about "courage, the purpose, and the vision" and "putting your money where your mouth is".

Ghandi freed a whole country by having conversations with a few people .. and then a few more .. and then more.

- Posted by Khürt Williams 
June 28, 2008 9:44 AM

I got to this blog through edufire. I must say I was surprised to see at least one person brought up the fact that innovation in education would be a nice place to start! For me it is the only place. I've spent my life watching education go down the tubes. I've come to the conclusion that it is an age old problem, not invented here. Everybody is running around trying to make a name for themselves and they don't sit down and take the time to see that the tools you need to innovate in education are there, use them!

That's why I left formal education and have joined the education revolution with my own consulting company. I believe that it is NOT the TECHNOLOGY, it is how we use it. I also have dedicated my consultancy to bringing education, government, and business together first, before you create the first lecture, the first curriculum... plan it to make a difference in the future of America, not just get butts in seats.

- Posted by kim  
July 5, 2008 3:43 PM


Before you go out and change the world, one thing MUST happen.
You got to become the change.
Gandhi changed himself first before he could produce any of the changes in circumstances around him. It was a spiritual transformation for him.

You want to educate the world, educate your kids and then your local community first.
You want them to learn reading, then you read first.

Same with tackling environment or every other issue for that matter.

You have to look at yourself closely and live your life's calling. To do so is real work and requires courage.

You do not have to deliberately change the world,
just transform yourself and the rest will automatically take care of itself.

- Posted by Hari Rajagopal 
July 9, 2008 5:56 PM

One most informative article i have read in a while....

- Posted by DeteCtive 
June 2, 2009 9:21 PM

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Umair Haque

Umair Haque is Director of the Havas Media Lab, a new kind of strategic advisor that helps investors, entrepreneurs, and firms experiment with, craft, and drive radical management, business model, and strategic innovation.

Prior to Havas, Umair founded Bubblegeneration, an agenda-setting advisory boutique that helped shape the strategies of investors, entrepreneurs, and blue chip companies across media and consumer industries. Bubblegeneration’s work has been recognized by publications like Wired, The Red Herring, Business 2.0, and BusinessWeek, and in Chris Anderson’s Long Tail, to which Umair was a contributor.

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