Value Creation

Tools as a Hallmark of Human Innovation # The creation and use of tools has long been recognized as a significant aspect of human development. While we now understand that many animals also utilize tools in various forms, humans have uniquely developed meta-tooling—the ability to create tools that in turn create other tools. This capacity for recursive innovation sets our technological development apart in remarkable ways.

While I typically maintain caution around predictions, I believe we’re witnessing the early stages of a significant business model evolution. An emerging category of ventures—what I call “incentive-aligned businesses”—appears positioned for substantial growth and impact in coming years. The Principle of Mutual Risk and Reward # The concept of “skin in the game” describes arrangements where participants share both risk and potential returns with their counterparties. This principle already operates in certain investment contexts—angel investors provide capital to founders, accepting significant risk in exchange for equity that may grow substantially in value if the venture succeeds. This structure creates natural alignment between parties as their outcomes become interdependent.