A Columbus' Egg to the Challenges of Impact Investing and Land Banking
“A Columbus' Egg” is a popular expression derived from a story about Christopher Columbus documented by a friend. The story goes that some Spanish noblemen were less than impressed by Columbus’ discovery of the Americas, pointing out that given time, anyone could have done it and that it took no great skill on his part. They expressed so in the presence of Columbus. Rather than take offence Columbus picked up an egg and placed a wager that none of his companions would be able to make it stand up on its end without any help. When they had all tried and failed, Columbus simply cracked the end slightly and balanced the egg on the now flattened end.
The story itself was not generated by Columbus. A similar story was told 15 years earlier about architect Filippo Brunelleschi, who went on to design the Florence Cathedral. Some say the Dome of the Cathedral has a flat tip in reference to the egg-conundrum, which Brunelleschi posed to sceptic officials, who demanded his solution to the construction of the dome.
The moral of the story is that a challenge may only be simple - once you know how to pull it off. The CRUX is to have the courage to try something new and be the one to succeed.
The Conundrum of effective Impact Investing and Land Banking
The solution to the above conundrum requires a break with common perceptions on how equity capital can be assembled from many and managed individually and collaboratively according to the stakeholders' understanding of purpose.
Like in the Case of building the Dome of the Florence Cathedral - arriving at effective impact investing-/ land banking solutions requires catalysts and sponsors, who share a purpose and entrust creative initiators to scale-up the initiative. The Dome-analogy is relevant, because effective impact investing / land banking requires a so-called “No-Group-Structure” with a strong foundation and independent pillars - functioning in concert, but always at arm's length, as to separate roles.
The first initiator of Bankier.co, S.T.Evensen, arrived at a solution to the conundrum of effective impact investing / land banking during an Owner/President Management Program (OPM) at HBS.edu 1997-1999.
On this Website’s Home Page the solution to the conundrum is explained as the “No-Group-Structure” of a Collaborative Value Network (CVN)-Approach - combining a business- and an open ownership model.
The "No-Group-Structure" of a CVN-Approach assembles:
However, nobody wanted to listen at the time. Why? The US Glass-Steagall Act was repealed in 1999 inspired by similar deregulation in Europe 1987/-88. The financial crisis of 2008 was in its making caused by regulators' laissez-faire policy - allowing the financial industry to practice transaction fee-driven cross-selling strategies - fueled by securitization of structured products without investors' benefit.
Please look to the Page: "The Value Chain". It has a Pdf for downloading on: "Role-divided Value Chain by a No-Group-Structure for Impact Investing".
Efforts since 2017 to scale-up a CVN-Approach for Impact Investing
After years of efforts for real financial reform - as well as pro-active restructuring + debt relief - S.T.Evensen and his fellow initiators were ready to launch - and they chose to do so by participating in HBS.edu New Venture Competition (NVC) 2017.
As already mentioned above - the NVC-entry was:
"A Social Enterprise for Impact Investing - organized as a Collaborative Value Network (CVN)".
Shortly after the NVC-entry a Global Industrial Company contacted S.T.Evensen at Bankier.co with an intention to seek co-opetition with other alliances to scale-up a CVN-Approach for Impact Investing with REACH into the real economies of maritime regions + hinterlands. Cases were written for discussing successful scaling-up of Social Enterprises for Impact Investing applied to e.g. Water Stewardship, Basic Infrastructure Improvements and Land Banking.
But, the Global Industrial Company was suddenly attacked by one of the Barbarian Establishment of Private Equity. Then came the outbreak of the COVID-pandemics...
Throughout this period did the financial authorities of Bankier.co’s host country and ESA in Brussels neither contribute to “National Remedy” - nor to "State Liability”. Look to an optional reading below.
An improved entry was submitted in HBS.edu NVC 2023; namely, a Social Enterprise for Impact Investing - organized by a Collaborative Value Network (CVN) - boosted by FINTECH.
Summits on the Power of Collaboration will be arranged with wanted Alliance-profiles as catalysts - step by step - in 12-twelve maritime regions. There, the above-mentioned Case on the Power of Collaboration to achieve effective Impact Investing in a maritime region will be discussed. It is an amended Case based on a Chapter in a textbook by S.T.Evensen: "The Altruistic Gene", which appeared early 2019.
As already mentioned - the CVN-Approach for Impact Investing can be applied in several contexts. These applications are inter-linked and can result in synergies. There are applications of the CVN-Approach for Impact Investing relevant to e.g.:
A) Basic industries such as Water/Food/Health/Logistics/Trade + Distribution;
B) Critical- and Basic Infrastructure;
C) Land banking - to mobilize local- and regional knowledge - and capital - to stand up to corporate players for improvements of environmental qualities - and/or to "liberate" Sea-Sides and River Banks -troubled by Acts of Nature and Man.
Many forces are likely to converge and call for effective Impact Investing and Land Banking - even Nature itself sends its signals due to dramatic Changes of Climate and fast deterioration of the Oceans' Health - as well as needed reconstruction in the wake of a COVID-pandemic. Capitalism with a purpose beyond profit will be demanded by stakeholders and leaders of public- and private sector alike.
But, incumbents of the financial industry are still practicing cross-selling strategies stimulated by internal bonus schemes. To avoid- or reduce abuse of an atomist (read: an individual without influence alone) SMEs can assemble, spread risk and build capacity to facilitate access to equity capital-financing or mezzanine financing by joining a Protection Club, which resembles a Protection & Indemnity (P&I) Club for ship owners. SMEs should experience real financial innovation with social impact - for example affordable access to trustees/fiduciaries as well as independent expertise, who can respectively ready vital dispositions and verify in matters of equity financing, ownership-dilemmas and owner governance - as well as in matters of other investment-/merchant services - always at arm's length to other roles in financial markets.
Note: Endowment for Ethics & Enterprise (EEE), initiated by Bankier.co, can offer impartial assistance and promotion of a National Association for Enterprisers, a (new) Protection Club and/or an independent Market Place in a maritime region – for example an Enterprise-Mart for broadcasting initiatives, needs, etc. - and adjacent access to impartial expertise for verification of initiatives and needs + analyses of viability/sustainability before investing - and impact(s) as a result of an investment.
Look for more details under Optional Reading on EEE on the Page: Networking in Maritime Regions.
Optional reading: Illegal favoring of the financial industry’s incumbents continued in Norway, Bankier.co’s host country. Why?
The Norwegian financial authorities implemented incorrectly EU's MiFID II also on January 3, 2018.
But, on June 21, 2019 a correct implementation of investment service-definition # 7 of MiFID, Annex 1, Section A, was carried through by the Norwegian financial authorities after 12-twelve years of continued complaining by Bankier.co. However, it was done without contacting Bankier.co related to its ESA-Complaint for "National Remedy". Nor did the authorities inform the public about new opportunities to serve SMEs' needs for raising equity capital according to investment service-definition # 7. And Norway has so far not chosen to honor its "State Liability" by fair play compensation of damages caused by violation of the EEA-Agreement - a. o. by illegal favoring of the financial industry's incumbents. When this came to the attention of Bankier.co another complaint had to be made - this time to both ESA and Norwegian financial authorities.
Note: Reminders were sent 1-2021, 11-2022, 1-2023 and 5-2024.
A brief summing up:
Bankier.co's ESA-Complaint has still more than 10-ten active Dossiers. Also Norway's "State Liability" has so far been ignored - although several times invoked by Bankier.co. ESA and the Norwegian Authorities must inform about a correct implementation of MiFID II and what it can result in - during and after the COVID-pandemic. Favoring of the financial industry's incumbents has caused damages to the SMEs of the real economy for too long and must be stopped. Extraordinary efforts are needed to compensate for years of damages to SMEs of the real economy. They have lacked- or had faulty access to competent trustees/fiduciaries as well as independent expertise in the fields of equity-capital financing, ownership dilemmas and owner-governance. If not, then a Class-action suit should be filed against the Norwegian Financial Authorities by underserved SMEs. But, who is capable and willing to file a Class-action suit against the State on behalf of Norwegian SMEs? Bankier.co could spend some of a fair compensation for damages on amical terms by the State to help Norwegian SMEs. The illegal favoring, which has damaged the real economy of Norway is a shame. SMEs should file a Class-Action Suit. They would do it, if they were properly organized and represented - like SMEs are in for example Sweden and Germany.
“A Columbus' Egg” is a popular expression derived from a story about Christopher Columbus documented by a friend. The story goes that some Spanish noblemen were less than impressed by Columbus’ discovery of the Americas, pointing out that given time, anyone could have done it and that it took no great skill on his part. They expressed so in the presence of Columbus. Rather than take offence Columbus picked up an egg and placed a wager that none of his companions would be able to make it stand up on its end without any help. When they had all tried and failed, Columbus simply cracked the end slightly and balanced the egg on the now flattened end.
The story itself was not generated by Columbus. A similar story was told 15 years earlier about architect Filippo Brunelleschi, who went on to design the Florence Cathedral. Some say the Dome of the Cathedral has a flat tip in reference to the egg-conundrum, which Brunelleschi posed to sceptic officials, who demanded his solution to the construction of the dome.
The moral of the story is that a challenge may only be simple - once you know how to pull it off. The CRUX is to have the courage to try something new and be the one to succeed.
The Conundrum of effective Impact Investing and Land Banking
The solution to the above conundrum requires a break with common perceptions on how equity capital can be assembled from many and managed individually and collaboratively according to the stakeholders' understanding of purpose.
Like in the Case of building the Dome of the Florence Cathedral - arriving at effective impact investing-/ land banking solutions requires catalysts and sponsors, who share a purpose and entrust creative initiators to scale-up the initiative. The Dome-analogy is relevant, because effective impact investing / land banking requires a so-called “No-Group-Structure” with a strong foundation and independent pillars - functioning in concert, but always at arm's length, as to separate roles.
The first initiator of Bankier.co, S.T.Evensen, arrived at a solution to the conundrum of effective impact investing / land banking during an Owner/President Management Program (OPM) at HBS.edu 1997-1999.
On this Website’s Home Page the solution to the conundrum is explained as the “No-Group-Structure” of a Collaborative Value Network (CVN)-Approach - combining a business- and an open ownership model.
The "No-Group-Structure" of a CVN-Approach assembles:
- Self-directed capital partners of an InvestCo + a Protection Club (the “Bridges” of the CVN-Approach);
- Competent trustees/fiduciaries of Regional Network Partners (the “Wedges” of the CVN-Approach).
However, nobody wanted to listen at the time. Why? The US Glass-Steagall Act was repealed in 1999 inspired by similar deregulation in Europe 1987/-88. The financial crisis of 2008 was in its making caused by regulators' laissez-faire policy - allowing the financial industry to practice transaction fee-driven cross-selling strategies - fueled by securitization of structured products without investors' benefit.
Please look to the Page: "The Value Chain". It has a Pdf for downloading on: "Role-divided Value Chain by a No-Group-Structure for Impact Investing".
Efforts since 2017 to scale-up a CVN-Approach for Impact Investing
After years of efforts for real financial reform - as well as pro-active restructuring + debt relief - S.T.Evensen and his fellow initiators were ready to launch - and they chose to do so by participating in HBS.edu New Venture Competition (NVC) 2017.
As already mentioned above - the NVC-entry was:
"A Social Enterprise for Impact Investing - organized as a Collaborative Value Network (CVN)".
Shortly after the NVC-entry a Global Industrial Company contacted S.T.Evensen at Bankier.co with an intention to seek co-opetition with other alliances to scale-up a CVN-Approach for Impact Investing with REACH into the real economies of maritime regions + hinterlands. Cases were written for discussing successful scaling-up of Social Enterprises for Impact Investing applied to e.g. Water Stewardship, Basic Infrastructure Improvements and Land Banking.
But, the Global Industrial Company was suddenly attacked by one of the Barbarian Establishment of Private Equity. Then came the outbreak of the COVID-pandemics...
Throughout this period did the financial authorities of Bankier.co’s host country and ESA in Brussels neither contribute to “National Remedy” - nor to "State Liability”. Look to an optional reading below.
An improved entry was submitted in HBS.edu NVC 2023; namely, a Social Enterprise for Impact Investing - organized by a Collaborative Value Network (CVN) - boosted by FINTECH.
Summits on the Power of Collaboration will be arranged with wanted Alliance-profiles as catalysts - step by step - in 12-twelve maritime regions. There, the above-mentioned Case on the Power of Collaboration to achieve effective Impact Investing in a maritime region will be discussed. It is an amended Case based on a Chapter in a textbook by S.T.Evensen: "The Altruistic Gene", which appeared early 2019.
As already mentioned - the CVN-Approach for Impact Investing can be applied in several contexts. These applications are inter-linked and can result in synergies. There are applications of the CVN-Approach for Impact Investing relevant to e.g.:
A) Basic industries such as Water/Food/Health/Logistics/Trade + Distribution;
B) Critical- and Basic Infrastructure;
C) Land banking - to mobilize local- and regional knowledge - and capital - to stand up to corporate players for improvements of environmental qualities - and/or to "liberate" Sea-Sides and River Banks -troubled by Acts of Nature and Man.
Many forces are likely to converge and call for effective Impact Investing and Land Banking - even Nature itself sends its signals due to dramatic Changes of Climate and fast deterioration of the Oceans' Health - as well as needed reconstruction in the wake of a COVID-pandemic. Capitalism with a purpose beyond profit will be demanded by stakeholders and leaders of public- and private sector alike.
But, incumbents of the financial industry are still practicing cross-selling strategies stimulated by internal bonus schemes. To avoid- or reduce abuse of an atomist (read: an individual without influence alone) SMEs can assemble, spread risk and build capacity to facilitate access to equity capital-financing or mezzanine financing by joining a Protection Club, which resembles a Protection & Indemnity (P&I) Club for ship owners. SMEs should experience real financial innovation with social impact - for example affordable access to trustees/fiduciaries as well as independent expertise, who can respectively ready vital dispositions and verify in matters of equity financing, ownership-dilemmas and owner governance - as well as in matters of other investment-/merchant services - always at arm's length to other roles in financial markets.
Note: Endowment for Ethics & Enterprise (EEE), initiated by Bankier.co, can offer impartial assistance and promotion of a National Association for Enterprisers, a (new) Protection Club and/or an independent Market Place in a maritime region – for example an Enterprise-Mart for broadcasting initiatives, needs, etc. - and adjacent access to impartial expertise for verification of initiatives and needs + analyses of viability/sustainability before investing - and impact(s) as a result of an investment.
Look for more details under Optional Reading on EEE on the Page: Networking in Maritime Regions.
Optional reading: Illegal favoring of the financial industry’s incumbents continued in Norway, Bankier.co’s host country. Why?
The Norwegian financial authorities implemented incorrectly EU's MiFID II also on January 3, 2018.
But, on June 21, 2019 a correct implementation of investment service-definition # 7 of MiFID, Annex 1, Section A, was carried through by the Norwegian financial authorities after 12-twelve years of continued complaining by Bankier.co. However, it was done without contacting Bankier.co related to its ESA-Complaint for "National Remedy". Nor did the authorities inform the public about new opportunities to serve SMEs' needs for raising equity capital according to investment service-definition # 7. And Norway has so far not chosen to honor its "State Liability" by fair play compensation of damages caused by violation of the EEA-Agreement - a. o. by illegal favoring of the financial industry's incumbents. When this came to the attention of Bankier.co another complaint had to be made - this time to both ESA and Norwegian financial authorities.
Note: Reminders were sent 1-2021, 11-2022, 1-2023 and 5-2024.
A brief summing up:
Bankier.co's ESA-Complaint has still more than 10-ten active Dossiers. Also Norway's "State Liability" has so far been ignored - although several times invoked by Bankier.co. ESA and the Norwegian Authorities must inform about a correct implementation of MiFID II and what it can result in - during and after the COVID-pandemic. Favoring of the financial industry's incumbents has caused damages to the SMEs of the real economy for too long and must be stopped. Extraordinary efforts are needed to compensate for years of damages to SMEs of the real economy. They have lacked- or had faulty access to competent trustees/fiduciaries as well as independent expertise in the fields of equity-capital financing, ownership dilemmas and owner-governance. If not, then a Class-action suit should be filed against the Norwegian Financial Authorities by underserved SMEs. But, who is capable and willing to file a Class-action suit against the State on behalf of Norwegian SMEs? Bankier.co could spend some of a fair compensation for damages on amical terms by the State to help Norwegian SMEs. The illegal favoring, which has damaged the real economy of Norway is a shame. SMEs should file a Class-Action Suit. They would do it, if they were properly organized and represented - like SMEs are in for example Sweden and Germany.