ECG Ecosystems: Spotting the Trees so that we can see the Wood.
An Ecosystem has an atomic structure. The nucleus, or determining feature, is orbited by electrons, or related activities without which the structure could not persist. It is this interconnectivity and an understanding of the interactions therein which drives ECG’s work.
At present, ECG is working actively in several such Ecosystems: sustainable mobility, logistics and supply chains, energy economics, digital assets and security, data-as-a-service, wellbeing, and luxury. We believe that these markets, and the structures on which they rest, are likely to be the most attractive and consistent for investors over all time horizons.
By continuously assessing the fundamental connections used and being made by and within these Ecosystems, ECG will provide a guide to securing consistent investment returns.
What we drive and how we drive will continue to evolve, with new opportunities emerging for new and legacy participants in this burgeoning ecosystem. From manufacturers of vehicles and batteries, to brokers, dealers, fleet managers and insurers, the historic Ecosystem is having to face hard lessons in traditional economics. Put simply, the pace of development in automotive design in the transition to non-ICE, and the costs of bringing this to market, are likely to change fundamentally the nature of the vehicle market.
Ownership is likely to be a barrier to further development such that ECG foresees a new market where use of vehicles replaces ownership as the economic imperative. Thus, new economic structures will emerge, allowing users to gain access to a vehicle when and where they require it. This structure will require a step change in vehicle fleet management.
What will enhance the customer experience of using, rather than owning, electric vehicles (EVs) is the software available to manage the smooth operation of the car. Currently, when people lease or purchase an EV, they have to download a number of apps to monitor their usage, power consumption, ability to connect to various charging stations, etc. What they need is a dashboard that integrates the different APIs into a seamless service.
We believe that one software as a service company will emerge from a crowded field to set the standard for fleets transitioning from internal combustion engines to EVs. That software is ODODRIVE, part of Drive Software Solutions.
Sustainable Mobility is an ecosystem that requires a multidisciplinary approach to success.
Necessity is the Mother of invention. It is safe to state that Global necessity has been acute over the last 2 years. No more so than in the vulnerability of global supply chains to both disease and war. Invention has been accelerated as a result, particularly in the evolution of the very basics of trade: the means of payment. From the explosive growth in Blockchain deployment, through the emergence of credible cryptocurrencies, to the beginnings of institutional and national acceptance, the start of the 21st Century’s second decade is likely to be seen as the origins of a new financial order.
This order will only persist if it has real-world applications. ECG believes that this tipping point is close, not least in the development of companies such as DCX. It is bringing cutting edge technology and leading Blockchain applications to the most basic of trade markets: food. Focusing on the international rice market as its launch, DCX is putting in place systems which facilitate trade. Through this facilitation, the economics of the Ecosystem will improve for all parties; attracting greater investment, more detailed logistical planning, and, ultimately, ensuring the free flow of goods on which we all rely.
From Bill Gates to HSBC, investors are betting on so-called climate tech, or a set of technologies designed to address climate change, reduce greenhouse gas emissions, increase the use of renewable energy, and improve energy efficiency. This is no longer an aspiration. The last two years have exposed the world’s economies’ reliance on hydrocarbons at a time when the provision of these hydrocarbons has been put in doubt like no time this Century. Economic history is replete with the emergence of technology to mitigate the needs and wants of the day. Globally, the age of hydrocarbons looks to be in its last days. Progress to a non-hydrocarbon world is accelerating, driven by economic and political need.
At Entrepreneur Country Global, we believe that a number of technologies merit investment in this area. We are invested in hydrogen and green energy aggregator technologies, which will expedite the transition from fossil fuels to sustainable sources of energy.
We are very positive on the outlook for hydrogen fuel systems. Hydrogen can be derived from many sources. However, the most attractive appears to be from defunct oil wells and reservoirs , from which hydrogen can be safely extracted, while keeping carbon in the ground. Using a patented process, Proton Technologies Canada is positioned to be a leader in the hydrogen gas market, which is forecasted to have a 5% CAGR over the next five years.
ECG is aware that fuel oil will not disappear from our portfolio of power sources. Yet, again, we are intent on finding and supporting those who seek to do things differently. Recycling plastic waste material into fuel is one such area of focus for ECG. We’re working with a B.GRN., company that has an exclusive license to process plastic into fuel from the only engineering firm in the world that manufactures the refinery equipment.
Sophisticated investors are using digital assets as methods of storing value. Holding cryptocurrencies in a digital wallet has become the norm. However, providing secure access to and management of digital wallets is still a challenge, and guaranteeing inheritance of digital assets is an area that requires significant innovation and thought leadership.
At ECG, we are working with technologists, lawyers, and risk management experts to create a best-in-class framework for digital assets, in which privacy, transparency and security are all paramount. One of our partners is aretiico, which is building a unique offering in digital security and identity authentication for digital wallets.
Interconnectivity is likely to be the abiding theme of the 21st Century. Flowing from the rapid expansion of mobile telephony and the internet, the world is now coming to terms with connectivity in all aspects of life. You will have heard about the Internet Of Things (IoT), which is an important growth sector and is likely to be a headline theme for decades to come.
Yet, alongside the IoT, is Data-As-A-Service, which is likely to define how we view our data: the generation of data, the ownership of that data and, critically, the monetization of the data – are all likely wrapped by The Internet of People (IoP). Using the blockchain to capture and store data is an opportunity for creative people to own the fruits of their labor and trade it. At its heart, this Ecosystem is driven by disintermediation: allowing the creators to play a full, economic role in the development, promotion, and monetization of their work without the need for non-creative intermediaries. This will challenge both received wisdom and the traditional economic structures which have, historically, determined value in this space. As we all look to manage ownership and use across our lives, the ability to exercise control over the value of our output is growing at pace.