A16Z: A new era of ownership economy

We are entering a new era of ownership. In this era, investment is becoming more and more dispersed, and retail investors are becoming more and more likely to participate in investment opportunities. As we all know, the public market is undergoing tremendous changes, and retail investors are gradually gaining primary market opportunities through small shares and Pre-IPO shares. However, the rise of retail investors is not limited to the open market. Regulatory changes have expanded the framework for private companies to raise funds from retail investors. A new wave of startup companies (such as Republic, Party Round, Otis, Masterworks, and OpenSea) have provided platforms and tools for more retail investors. They own shares in private equity markets and alternative markets, such as wine, cars, and art (including NFTs), which in the traditional model can only be entered by the super-rich.

For start-ups, the rise of diversified investment represents an opportunity to narrow the gap between users (or customers) and investors (owners). The next generation of consumers want to be rewarded for being loyal customers, and they want a way to get ownership of the places where they shop, eat, and consume. So how does the platform combine this willingness to acquire ownership in the private equity market, open market, or alternative market with the interests of consumers?

From a pure product and user experience perspective, start-ups can be embedded in the user experience and convert users into owners. The stock repurchase program promoted by Stash is an example. Whenever customers use a certain product or shop in a certain store, they will get a part of the inventory return, thereby increasing the user’s loyalty to the company. With the help of the product priority program, fintech companies can also incentivize consumers to swipe their cards, invest and participate in the platform, and reward those who participate the most. In addition, the company can also use ownership incentives to solicit better product feedback from customers, so as to obtain more feasible product feedback, so that those customers who have a value consensus with the company can feel the intimacy with the company, and then help them Build better products.

When it comes to customer acquisition, companies that give customers and advocates shares instead of investing marketing expenses on Facebook and Google should see lower CAC (Customer Acquisition Cost). Finally, in terms of fundraising, the founders began to leverage their user base. Airbnb established a landlord endowment fund to distribute equity to the landlord when the company went public. Recently, Clubhouse and Gumroad are also raising funds from their users and communities. As more and more consumers and investors continue to have the willingness to take a place in decision-making or ownership, companies and organizations that reward their supporters in the form of a “share of the pie” will eventually become more competitive companies. .

Author: Matthieu Hafemeister, A16z Fintech Trading Analyst

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/a16z-a-new-era-of-ownership-economy/
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