Tech-enabled Private Equity 2.0
This document describes the thesis espoused by Awakened Corp, a holding company that operates as AwakeVC, a new technology-powered private equity company. The document lays out the conceptual model of the Awake Commerce Engine, that allows Real-Time Data-Driven Blitzscaling, enabling private equity to create outsize value for LPs.
The Marketplace of Value
AwakeVC (Awake) is focused on enabling frictionless commerce on a global scale.
Buyers and sellers connect inside marketplaces so that they can trade with each other. Here value is created in two ways:
- Value Producer creates something, and a Value Consumer buys it
- Seller connects Value Consumer to Value Producer and facilitates the exchange
In the first case, value is directly created, then exchanged between the Value Producer and Value Consumer. In the second case, there is a Seller that facilitates the Exchange of Value, and this facilitation also creates Value.
The Unique Awake Formula
Every PE firm needs a way to be competitive – particularly in today’s world where financial engineering adds increasingly insufficient value – and indeed, LPs demand value creation in new ways.
Awake recognized that the marketplace metaphor – or the trading exchange metaphor – applies to all transactions – and a new Commerce Engine based on a high-speed trading platform can unlock incredible scale across entire supply chains.
Removing excess layers and middlemen (or facilitators) is the key to creating more value for buyers and sellers. This is what makes efficient supply chains and efficient markets.
The closer you bring buyers and sellers, the closer you get to the promise of direct-to-consumer commerce (DTC) – which creates the highest margins in any industry, for there are no middle layers at all.
The Awake Thesis
Awake believes in the power of trade as a global engine of growth.
Awake has a non-linear tech-powered advantage for scaling marketplace commerce.
Awake understands the promise of decentralization and blockchain technology.
Awake is investing in a seamless cloud of Interconnected Marketplaces.
Awake is delivering the Promise of the Blockchain Future.
Uber and Airbnb are only the beginning of the complete decentralization of the Gig Economy amidst disrupted industries and supply chains. Every industry will become decentralized as the old guard in each is toppled by the nimble technology-powered marketplaces that create direct-commerce opportunities for all parties in each such supply chain and marketplace.
This is the opportunity that represents the future of commerce itself.
This is the real reason why blockchain has so much potential for disruption, for it is the ultimate facilitator – a decentralized trust mechanism that removes the need for nearly all middlemen.
Awake represents the opportunity to invest in the “Uberization” of the world of commerce.
Each such marketplace disruption is a massive opportunity, as some industries are incredibly ripe for the picking. Awake is creating a portfolio of such investments, across a variety of industries and vertical marketplaces.
In collecting this portfolio of disruptive marketplaces, Awake operates primarily in two ways, one that addresses specific opportunities in specific industries, and one that addresses general needs and enables commerce across industries. In other words:
- Awake as a holding company will buy and sell companies that represent marketplace commerce in specific industries.
- Awake will also invest in tech companies that enable commerce in general, across industries.
These vertical marketplaces all leverage the key secret sauce that makes Awake the most advanced technology-enabled Private Equity group in the world.
Awake Commerce Engine Platform
At the core of the Awake tech-powered marketplace and platform strategy is AwakeX.
AwakeX is a high-speed decentralized exchange that allows trades to be settled in under 1 second. This includes buying and selling commodities, stocks, bonds, and so forth, as well as products purchased by shoppers online that are sold by online marketplaces.
This is not just payments, but payments, liquidity, and financial engineering APIs – rolled into a single real-time solution.
The data that powers these transactions is real-time – including the identities of various parties involved, what was sold, what was paid for it, how, when, and how fast. This information is a live feed of the actual liquidity of the marketplaces, supply chains, and individual businesses.
This deep intelligence is unparalleled and can feed a growing variety of advanced AI algorithms that can invest or trade within this world to either create new value or provide liquidity.
The Awake strategy is now straightforward – invest in growing cash flow businesses in various high-margin industries that have been relatively untouched by technology. In other words, find those industries that have not quite been “Reaggregated” yet.
Reaggregation being taking apart a supply chain, and aggregating various cash flows across the reassembled marketplace platform. So to Reaggregate is to Acquire, then “Uberize”.
This is Reaggregation. This is the Awake Commerce Engine, applied at a global scale.
Awake enables Real-Time Data-Driven Blitzscaling.
Step 1. Acquire suitably fast-growing cash-flow businesses.
Step 2. Integrate the Awake Commerce Engine into the acquired companies which allow the cash flows to be exponentially grown globally, by removing cost and complexity of transactions, across the entire supply chain.
Step 3. Allow investors to exit any such acquired company via AwakeX trading platform, the fully SEC-licensed ATS.
Secondary Markets and Liquidity
In this manner, Awake represents a full-stack solution for global investors, large or small.
The AwakeX trading marketplace represents assets and investments in a fractionalized manner – allowing anyone to come in and out of a live market with live pricing – entirely regulated in each jurisdiction it operates in, starting with the United States.
This approach provides a funding horizon that stretches to infinity because liquidity is no longer locked in for long periods of time. This allows investors to remain investors, and business owners and marketplace platforms to grow independently – each finding liquidity whenever they need it, at a price that makes sense for them.
Berkshire Hathaway 2.0
Similarly, this is how Awake aims to create a next-generation wealth creation holding company, one that is truly tech-powered and has the means and understanding to transform entire industries.
Awake aims to be the future of holding companies and private equity – a new Berkshire Hathaway 2.0.
Investors will be able to access liquidity whenever they need it, and businesses will be able to scale independently and efficiently, across global markets leveraging resources across the Awake platform.
Awake is raising a seed via a combination of debt and equity to acquire and fund operations of the first wave of companies:
Quintype is an end-to-end solution for digital media and audience engineering operations that is real-time, omnichannel, and powered by AI, matching audiences with the most engaging content experiences and ecosystems.
Quintype was founded in September 2014, and is a B2B SaaS platform, with associated revenue opportunities that will kick in 2019-2020 and beyond, as the aggregated shopper audience scales past 250M buyers.
The bottom-of-the-funnel transaction settlement layer AwakeX is powered by a multi-asset high-speed blockchain capable of decentralized matching at under 50 ms, and will hit 20ms and lower this fall.
Apart from private equity and accredited investors, AwakeX will also bring connectivity to vast segments of consumers and users via traditional market players. Fidelity DriveWealth and FT are examples where we plug in APIs and deliver product both ways.
The underlying solution is composed of a few companies including a Wall St trading firm and a blockchain fintech startup.
Spiritful & Awake Realty
We will have more to say about these two global marketplace platforms shortly. Spiritful and Awake Realty address the global economies of alcohol production and consumption, as well as real-estate management and investments respectively.
Conclusion – Awake Market
Awake is manifesting the promise of decentralization, the promise of blockchain to create a new, more cash and time efficient world of trusted global commerce at scale.
The future of the world’s commerce is Awake.
Read more details – The Awake Design