By Vince DelaRosa, 07/22/2023
For decades, Wall Street models have dominated the offerings for both companies and investment alternatives. Similarly, bonds, T-bills, and other programs are examples of what the government has provided. It is time to embrace innovative investment solutions designed within a tribal government platform model to promote our collective financial prosperity.
For as long as we can remember, Wall Street has been the primary destination for both businesses and investors seeking financial products and opportunities for growth. Wall Street has largely done a good job. Meanwhile, the government's offerings have been limited to bonds, T-bills, some agency activities, and little else, no real innovations.
In fairness, the government has sprinkled out programs that have been helpful, from USDA, SBA, HUD, and various others that have moved the needle for some communities. However, with each passing generation, investors and businesses have evolved to embrace the right long-term strategies for their financial goals at any given time. Today, there are calls for a new moment, where we spark a new business and investing ecosystem built for growth and digital efficiency.
While the fundamentals of investing and business remain the same, such as earning potential, long-term objectives, and risk appetite, the methods of investing and business growth must undergo a transformation. The tech is here, example, with a cell phone you too can be a day trader, not the smartest move, but you see the speed to market action. It is clear, people want freedom and a frictionless way to make business moves.
THE GENESIS OF AN IDEA
Five years ago, I started pursuing the concept of creating an enhanced government business platform ecosystem for the American markets. Today, we are currently in the process of constructing the framework, with various elements built and on the drawing board. We do have some pieces together like federal contracting and M&A models.
Today there are decent tools available for building businesses and investing models, however, there is no active governmental programs like what is proposed here.
Generally, I am focused on bread-and-butter business transactions, Tribal Street, Main Street, and Latino markets. But I am witnessing significant transformations taking place. Business and investments are thriving in tribal and Latino markets. Many businesses and investments are outperforming market trends. Through higher returns and rapid growth.
In fact, these activities are so pronounced, their economic metrics eclipse many countries GDP. You heard that right. This is the activity we will catalyze, commercialize, and harness for more growth in the coming years under this platform model.
The Core Idea - Tribal Government as a Platform
Consider a platform model you may know like Uber, Lyft, and Airbnb platforms. In those cases, you use your car or home to drive revenue for yourself. The core tribal platform model will function the same way. Instead, you will be driving (guiding) your business and investments towards better performance with expert guidance and unique access to deals and contracting options.
The tribal platform allows you to do business as usual and secure deals when they become available. Annually, we will sort through an average of 18,756 contracting options, or 1,563 monthly. Industry types will vary on contracting flow.
This model holds tremendous potential. As an example, Venture Capital might arrange hundreds of LPs on a tribal platform and save at least 35% on taxes. Furthermore, depending on the business type, revenues for those LPs might rise by more than 25% under unique JV structures. Capital gains taxes are voided under this model.
From my perspective, as a former elected tribal official, American Indian tribes can offer this approach in the most unique way. They can shed typical governmental bureaucracy and harvest best in class options, industry by industry. This includes segregating politics from business.
The idea is simple, tribal government in this context serves as a platform model, or a powerful utility. They breed open innovation models, and they facilitate industry, business, and investor collaborations to do what they do best, curate business growth and investing inertia.
An Ecosystem Platform - With Unique Advantages
Native American tribes possess unique advantages that make them ideal candidates for ecosystem platforms. Their sovereignty grants them the ability to design innovative regulatory frameworks and tax structures, fostering investor and business-friendly environments. One unique aspect is business activities can happen all over the country not just on reservation lands.
Industry players are taking note, even Elon Musk is working with tribes on his Tesla project. Further, we have been asked about private credit. This is a thriving sector within non-bank lending. This segment has amassed an impressive $1.3 trillion in assets under management, with an available capital pool of $350 billion. Our model could pursue this activity, this is an open innovation opportunity. We welcome a group to help us build this option out.
Innovation Needed - Every Man for Themselves
Government should be a platform to help markets scale. In ideal situations they would offer new products to enhance business. As active businesses, we have to recognize Congress may not be able to offer the necessary business reform that we need, they're simply too slow. In these circumstances, we should analyze what industry titans are doing and, if it makes sense, follow suit. As you can see from the headline below, that might be a tactical or practical decision, but it sends a signal; do what is best for you!
America's largest bank is offshore.
Let this sink in, the largest bank in America is banking in India for blockchain settlements. See here. This is shocking on so many levels! What kind of message does this send? "We can't do this within our monetary system in America, can we bank with you here in India where there is more innovation?"
It is time for the American businesses and investors to follow suit and move to better market conditions as JP Morgan Chase has. Imagine crafting new investment solutions with a tribe? Some tribes are pursuing an open innovation model, as they look to tailor fit modern investing, business, and banking options.
Tribes are also open to working with legacy VC, PE, and Wall Street models to refresh some of their approaches. As technology advances so must our business approaches and investment products.
There is a Better Way
I suggest that new and energized tribal platform opportunities is a move we should all consider, you gain stronger market performance, with zero downside. This is where dynamic new approaches for business and financial transformation is present.
The agility and adaptability of a tribal ecosystem in navigating market dynamics will be led by AI technology and business intelligence. Tribes are already in full swing, flexing new financial innovations in private transactions. At this point, Tribal Street is easily outperforming Wall Street. Example, many of their holdings are 1200 to 1600 basis points greater in retained earnings in the context of lower taxes. They are also doing better on margins, scaling dramatically over traditional Wall Street outputs; in some cases, by 20%.
BUILT IN MARKETS: NATIVE AMERICANS & LATINOS
What we are doing here is leveraging our connections and business relations, then aligning active market forces. The magic is in capturing, monetizing, foundationally building the core output of these markets. This will be a massive enhancement to the platform concept. Here is a dive into a few industry segment numbers.
5th Largest GDP in the World!
NOTE: These are active market conditions. THIS IS A SIGNIFICANT PROOF OF CONCEPT! It is rare that a new business model like ours, would open with active market conditions and elements of the core business model comprising the 5th largest GDP in the world. In fact, according to the chart above, these market conditions would be at the 3rd largest position in GDP production in the world!
We compose these numbers by using an independent economic report and we blended the economic output and production of American Indian and Latino markets to form the foundation of our economic forecast. Together these markets offer some of the most advanced economic and business investment outputs in the world. Contained here is 43 Pages of economic data and analysis which we partially relied on. Combined, our annual economic GDP output eclipses $4.5 trillion!
The 5th largest GDP in the world, puts us ahead of Russia, Canada, Italy, and Brazil.
Tribal significance and market presence is known nationally, but Latinos are equally impressive, presenting strong contributions. Latino markets will be involved in our economic, financial, and monetary ecosystems as we build out. Combined our model will harness one of the strongest private business networks in the world!
OUTSIDE OBSERVATION:
This is also the strongest growing business segmentation in America.
"Underlying this continued positive economic trajectory is the fact that the U.S. Latino cohort has accounted for nearly 80% of the net new additions to our labor force during the past decade, while also accounting for 52% of all net new employer businesses, making it our country’s most prolific entrepreneurial cohort. The youthfulness of this cohort means many of those workers now have the experience and skills that are moving them up the income ladder. At the same time, the growth in U.S. Latino educational attainment has been leading all other cohorts, which means the newest Latino entries into the labor force are entering at higher paying jobs and professions than ever before." - Latino Cohort
A FEW KEY TAKEAWAYS - COLLABORATION OPPORTUNITIES
When harnessing the 5th largest GDP markets in the world, the playbook for business is noteworthy. Here are a few of the key business components that we project to lead out with.
* U.S. Federal Government Contracting: We have as of July 23, 2023, north of $16 billion of contract opportunities in pipelines that we could pursue. As we launch, we have existing business collaborations that could plug into some of these contracts. We are looking to add new bandwidth quickly so we can pursue some of these large federal contract pipelines. See more here.
* A Tribal Investment Bank: A key interest is a cutting-edge tribal private investment banking firm specializing in customized financial products through alliances with American Indian tribes. The team will include experienced financial, legal, and tribal advisors with deep knowledge of tribal tax structures and regulations.
Products and Programs:
Tribal 1031s: Exclusive exchange program for investors to defer capital gains taxes while selling and acquiring investment properties within a specific timeframe. Partnerships with tribes offer additional tax advantages for substantial savings.
Real Estate Investment Trusts (REITs): Collaborating with tribes to establish REITs, enabling investors to pool funds and invest in a diversified portfolio of income-generating properties. REITs offer unique tax benefits and potential for long-term capital appreciation.
Venture Capital (VC) and Private Equity (PE): Facilitating strategic partnerships between tribes and private equity/venture capital firms, driving innovation and growth across industries. This alignment unlocks significant investment potential and supports small businesses and under-resourced companies.
Mergers and Acquisitions (M&A): Native Advisors assists in M&A deals by leveraging strategic alliances with tribes. Our expertise in tribal tax structures enhances the financial advantages and growth opportunities for businesses seeking mergers or acquisitions. See more here.
Competitive Advantage: Native Advisors excels with expertise in tribal deal structures, extensive tribal partnerships, and unique investment products. Tailor-made solutions provide unrivaled tax savings and growth prospects, positioning us as a potential leading firm in private tribal investment banking.
Expertly Aligning Market Forces
The alignment of powerful market forces (Native Americans & Latinos), investments banking, labor, capital, talent, and governmental systems controls, can converge an entire regional economic movement. This is what we are building up to.
Summary
We are pioneering the evolution of business models and investing products into a tribal governmental ecosystem platform. The results will be enhanced performance across all markets. We are convinced that we all must do as JP Morgan Chase is doing and seek higher ground, better business environments.
For our model, tribes are the new frontier markets right here in America. We look forward to working cooperatively with investment and industry business leaders as we all seek a better way to conduct business and investing.
Tribes with their inherent sovereignty, distinctive advantages, and community-oriented approach have the power to stimulate economic growth, foster innovation, and cultivate prosperous communities for generations to come.
Through strategic planning and a forward-looking mindset, tribes can unleash their full potential as an ecosystem platform for all.
CONFIDENTIAL STRATEGIES
Observe, there are more details to explore regarding the potential of larger strategic partnerships for some types of deals. By leveraging the unique tax advantages offered by these partnerships, we can blend in additional tax benefits, enhancing overall profitability. These confidential trade and business discussions are exclusively tailored for interested investors and businesses seeking optimized financial outcomes.
BONUS INFORMATION - An independent review of our business model.
To learn more, feel free to contact us here.
Vince DelaRosa is a former legislator for an American Indian tribe and the founder of Native Advisors.
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