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Virtual Economy for Vapor Startups

The startups remain in the incubating stage for a long time during which they are still not exposed to actual market conditions. The exposure to a virtual economy simulation would encourage startups to learn the market risk faster and grow fast.

Photo of jyotirmaya mahapatra
13 23

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All these vapor startups take a lot of time in actual realization because the people behind the ideas are not very sure about their actual requirements.

These requirements are :

1. How much infrastructure.

2. Starting capital

3. People and expertise

4. Margin and Break-even

5. Risks and Market Policy

6. Entry challenges

All this can be solved with virtual economy during the vapor state itself. An economy simulation can be created online in which banks will sponsor such vapor startups with virtual money.

Even though the money will be virtual, the simulation will be driven by actual market driving factors such Price Index growth, GDP growth, Government policies ,etc.

Sometimes such vapor startups may not want to share their product offerings while being in incubating state. However they can share their offerings portfolio. ( such as Infrastructure , Advertising , Networking , etc.)

The banks will sponsors these startups for buying virtual resources and since other such startups will also buy virtual resources , there will be a projection of actual economic movements in the virtual economy hub. The virtual economy hub condition would reflect conditions similar to the future real economic conditions. this will prove a great learning ground for such vapor startup.


How will your concept support web entrepreneurship?

1. The vapor startups would get a better understanding of market movements and economic factors. 2. They could plan their asset buyings and size of offerings based on the economy projections. 3.This would result in improved risk mitigation planning. 4. The profiles of vapor startups which are performing well in the virtual economy can be shared with potential VCs. Most Important : Learning will reduce the fear of investment.

What kinds of resources will be needed to get this concept off the ground and scale it?

Online forum having the following important sections : 1. Market compliance/policy mechanism 2. Banks and VCs fund simulation 3. Infrastructure simulation 4. Buyer or Entrepreneurs A group of market experts or analysts would be required to moderate in the initial phase of the economy simulation. However once the system grows robust, the market movements will become self driven.

How could we get started?

1. Such a economy forum can be created and integrated with social networking sites. Farmville is an excellent example of a self driven simulation. 2. Banks can start service like " Future Loans " where they give some special offers to startup if they perform better with Future Loans and payback in time. Need more suggestions.

Virtual Team:

Deepak Singh

13 comments

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DeletedUser

nice one !

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Photo of jyotirmaya mahapatra

An Inspiration :

http://www.youtube.com/watch?v=KHU5utWu3Zk&feature=related

The video suggest that how social media can be used predict market movements.

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DeletedUser

It could be something like a Business Game. A environment a Simcity where you can simulate real market condition.

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Photo of Deepak Singh

Jyotirmaya,

We can set some goals (Motivation) to future start ups,
It might be a kind of stage, where they have to complete each stage.
After each Stage a Start up will achieve something. It could be virtual as well. I hope this idea might work with the above concept.

Deepak

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Photo of OpenIDEO

Congrats on this post being today's onsite Featured Concept!

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Photo of jyotirmaya mahapatra

Thanks openIDEO !

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Photo of jyotirmaya mahapatra

A thought :

Can we design a banking service called Future Loans similar to the concept of Future Stocks.

Future Loans will be a service in which Banks provide a future date loan to the startups based on mutual consent. The eligibility for future loans is decided by the social media popularity of the startup and once a threshold popularity target is achived the loans can be actually obtained with sepcial offers.

Here social media popularity becomes the marker of economy for the startups.
For example :
1. "number of likes" or "number of mentions" become a marker of economy.
2. A threshold target of number of tags/mentions become the eligibilty condition for Future Loans.

This will give these startups a lot of visibility as well a hands on expericence of economic condition.

Please post you suggestion.

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Photo of jyotirmaya mahapatra

your suggestions *.

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Photo of Paul Reader

I like the idea of the loans but I'm not so taken with the popularity poll criteria. Could you build it into the concept on the basis of a virtual economic tipping point. Although popularity for the idea would form a part in reaching the tipping point it would not be the sole criterion.

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Photo of Paul Reader

Very interesting concept Deepak.
Most of this forms an essential part of some of the suggestions for training in entrepreneurship
I don't have the answer but I should like to see product appeal and market incorporated somehow.

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Photo of jyotirmaya mahapatra

Thnx Paul.
Currently the idea is in abstract form. But I am thinking on the lines of incorporating things like how we can use the social media content as a marker of economy.

For example :
1. "number of likes" or "number of mentions" become a marker of economy.
2. A threshold target of number of tags/mentions become the eligibilty condition for Future Loans.

This will give these startups a lot of visibility as well.

I will be posting a detailed concept soon.

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Photo of Meena Kadri

Liking your rationale & motivation here, J.

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Photo of DeletedUser

DeletedUser

Nice idea. I like your plant-like diagram. Also some countries in the EU banks are not as willing to be investors. This is very common in Italy so what other options could a place have?