Posted on Nov 20, 2023Read on

Demystifying Finance: Gratitude for Mihir Desai's Enlightening Insights | GratitudeSeries 20/60

Understanding the Complex World of Finance

In my journey to explore and understand the multifaceted realm of finance, I've been fortunate to come across two transformative books by Harvard Business School professor Mihir Desai: "How Finance Works" and "The Wisdom of Finance." These books have not only opened my eyes to a new perspective on finance but have been instrumental in shaping my approach towards valuing DAOs and skill-based communities.

The Revelation of Financial Mechanics

As someone primarily focused on labor market frictions, I initially steered clear of deep financial discussions, naively believing that integration into the crypto ecosystem would automatically address these concerns. However, as we progressed, the need for a comprehensive understanding of finance became undeniably crucial, especially when valuing our DAOcommons protocol. Here, Desai's works provided invaluable insights.

Beyond Traditional Financial Models

Desai's expertise lies in breaking down complex financial concepts into understandable components, making them accessible even to those who may not be 'numbers people.' His books explore the nuances of balance sheets, investment strategies, and risk management, all presented in an engaging, relatable manner. This demystification of finance has been a beacon of clarity, guiding us through the often murky waters of financial analysis and valuation.

Inspiration for CommunityVenture Studio

Drawing inspiration from Desai's teachings, we ventured beyond traditional finance methods and ratios. This led to the inception of CommunityVenture Studio, a novel venture model that fosters skill-based communities. These communities not only produce skilled founders but also ensure their wellbeing is accounted for, an aspect often overlooked in traditional venture models.

A Tribute to Prof. Mihir Desai

For his remarkable ability to simplify and humanize finance, for guiding us through the labyrinth of financial ratios and methodologies, and for inspiring us to innovate in our financial approaches, I extend my deepest gratitude to Prof. Mihir Desai. His works have not just educated us but also emboldened us to envision and build a more equitable and well-rounded financial ecosystem.

In "How Finance Works" and "The Wisdom of Finance," Desai has not just imparted knowledge; he has ignited a spark of curiosity and courage, enabling us to see finance through a lens of creativity and humanity. His contributions have been a cornerstone in our development of the DAOcommons protocol and the CommunityVenture Studio, shaping our understanding of finance in the context of a rapidly evolving digital economy.

Thank you, Prof. Mihir Desai, for your invaluable contributions to the world of finance and for empowering us to think and act beyond the conventional. Your work continues to inspire and guide us as we journey through the intricate landscape of finance and its applications in our quest for a better, more inclusive economic model.