Assetization Terrace Talk

It was a memorable evening at our new offices in Zurich as we hosted our first Terrace Talk, marking the beginning of what we hope will become a lasting series of discussions on innovative topics from the worlds of finance and technology.
 

The evening featured a discussion between GenTwo co-founder and CEO Philippe A. Naegeli and Professor Kean Birch, Director of the Institute for Technoscience & Society at York University in Toronto, on the subject of assetization. 

It was also a "tale of two books". 

Along with GenTwo Chairman Patrick Loepfe, Naegeli is author of the book “Assetization – How Pioneers Are Banking On a 78 Trillion Dollar Investment Opportunity”. 

Professor Birch is among other things editor of the MIT-press published book "Assetization: Turning Things Into Assets in Technoscientific Capitalism", and considered one of the world's foremost experts in the subject.
 

This set the stage for an interesting deep dive into assetization from two different perspectives: one academic, and one focused more on the practical aspects of the topic.

Here are some of the key takeaways.

What is Assetization?
 

Birch discussed how he got interested in the assetization topic. From the academic point of view, assetization refers to the process of transforming various entities into assets that can be owned, controlled, traded, and capitalized. It was the fact that this concept extends beyond traditional financial assets – taking in things like intellectual property, personal data, and even non-conventional items like sports management contracts or YouTube reputations – that really caught his attention. His research focuses to a large degree on these aspects.

Naegeli emphasized GenTwo's mission to democratize investments, allowing people to invest in their beliefs. By securitizing a diverse range of assets, he explained, GenTwo aims to make non-bankable assets accessible for investment and also provide the tools for mass customization of financial products across all asset classes. This approach not only democratizes access to investment opportunities, it also introduces new market opportunities, thereby enhancing economic participation and growth.  
 

Assetizing Data
 

Both men also discussed a wide range of assetization use cases, from intellectual property and infrastructure through to digital and non-bankable assets.  

Professor Birch also discussed the broader economic implications of assetization. He shared how recognizing R&D as an asset has significantly impacted GDP calculations, exemplified by the U.S. GDP increase due to changes in national accounting standards.
 

Pesonal data was also an area where assetization could play a role. Right now it is the large tech companies who own the lion's share of opportunities for data monetization. Birch discussed some alsternatives, including the idea of a data wealth fund—a public entity that could manage collective data for societal benefit. Assetization could help in spreading that wealth.
 

Governance and Ethical Considerations
 

The discussion also delved into the philosophical and practical implications of assetization. Both Naegeli and Birch highlighted the need for a balance between unleashing economic potential and hidden value while also ensuring ethical practices. Birch expressed concerns about unintended effects when assetizing things such as public infrastructure or nature assets that can have an impact not just today but also on future generations.

The conversation also touched on the vast potential of assetization in creating new investment opportunities. Examples included assetizing unique and exotic items, such as sports management contracts and human capital. Naegeli reflected on GenTwo’s role in enabling these innovations, sharing stories of some of the company's most surprising assetization projects, including the assetization of a cattle farm.

Audience Engagement  
 

An engaging Q&A session allowed audience members to explore future possibilities of assetization. Questions included what were GenTwo’s most exotic assetization projects (the answer: the aforementioned cattle farm) and if there is anything that cannot be assetized (the answer: of course, only things that can legally be owned can and should be assetized)

During the Q&A Anastasia Bondareva, GenTwo’s head of structuring, also shared her perspective on the potential of assetization to provide affordable financing for startups and sustainable projects, underscoring the practical benefits of GenTwo’s approach and its alignment with broader economic and social goals.

As the evening drew to a close, the conversation wrapped up with reflections on the democratization of finance and the innovative potential of assetization across various sectors. Naegeli and Birch expressed optimism about the future, emphasizing the role of assetization in creating new investment opportunities and driving economic growth. 

Picture by: Thomas McAdam