Overview:
Venture capitalist and author Seth Levine breaks down “dynamic capitalism,” entrepreneurship and his new book, "Capital Evolution."
Denver’s economy is shifting fast, and so are the conversations we’re having about what comes next. That’s why this week’s 5 Questions focuses on someone who has been thinking deeply about the future of work: venture capitalist, author and community-impact advocate Seth Levine. His new book, “Capital Evolution: The New American Economy,” out Dec. 9, argues that the system we’ve inherited is straining under modern pressures and that reshaping it is necessary.
Levine, who is a partner at Boulder’s Foundry Capital, has long pushed for a version of capitalism rooted in community, responsibility and shared prosperity. From co-founding Pledge 1% to championing entrepreneurs across Colorado, the U.S., and emerging economies worldwide, he’s built his career around the belief that strong businesses and strong communities should reinforce one another, not compete.
In this conversation, we dig into what “dynamic capitalism” entails, explore how purpose and profit coexist and discuss why this challenging job market might still be an ideal time to start something new. We also examine the needs of higher education and young workers in today’s landscape. If you’re wondering where Colorado’s economy is going or how individuals can help shape a more equitable, resilient system, this is a conversation worth reading in its entirety.
You have a book called “Capital Evolution” coming out in December. In it, you argue that our current form of capitalism is outdated and must be reimagined. What should it look like?
It seems clear even to a casual observer that our current economy is nearing a breaking point. We see it in the rising populism on both the left and the right. With more and more people questioning whether capitalism works (nearly 50% of people under 40 don’t believe it does, for example), we felt like it was due for an examination. The timing couldn’t have been better—having started this work over three years ago, the questions we raise in the book, “Capital Evolution,” are now in the everyday conversation.
In the book, we argue that there is a better way forward. Not socialism, which we believe history shows clearly never works, but a better form of capitalism—what we term dynamic capitalism. Unlike neoliberal capitalism, which we’ve been practicing for the past 50 years, dynamic capitalism takes a longer-term view, addresses the needs of stakeholders other than just shareholders, empowers workers and the middle class and addresses the urgent challenges of inequality and climate change.
Dynamic capitalism is resilient and asks us to be intentional about how we shape our economy rather than submitting to the “invisible hand” of the markets. It also acknowledges the rising power of business in our society, as government and media are in retreat, but also suggests that they have responsibilities to their employees, their community, and the planet. It argues for a balanced role for government (setting the guardrails and, in some cases, partnering with the private sector, and in limited cases, stepping in directly).
You are a venture capitalist but believe in profit with purpose. Can you give us some examples of what that looks like, and can that be applied to the news media, too?
I don’t think profit and purpose are at odds. In fact, there is quite a bit of research that suggests that they pair quite well together and that businesses that consider factors other than their immediate bottom line actually do better in the long term.
I am a co-founder of Pledge 1%, a global movement for corporate impact that encourages businesses pledge a percentage of staff time, product, profit and/or equity to their local communities. Some of the largest technology companies of the past decade are members, and collectively we’ve helped route over $3 billion to local non-profits. Pledge’s mission is to inspire, educate and empower every company to leverage its unique assets for purpose. In return, these businesses find that they have higher employee retention and satisfaction and that their community purpose becomes a rallying cry that betters their entire business.
I am also involved in a number of directly impactful organizations, including some in Colorado, such as Gary Community Ventures, Howdy Partners and Trailhead Capital.
So many people are losing their jobs these days, and the market is very tough. Is this a good time to become an entrepreneur, and what would you say to those considering this path?
The tough job market does make this a good time to think about entrepreneurship. Small businesses create about 1.5 million jobs in the US annually, or about 65% of all new jobs (and the vast majority of new jobs in the country are created by companies in their first or second year of operation). These are compelling statistics, but prospective entrepreneurs also need to consider federal funding cuts for small businesses as well as the time and commitment required to be a successful entrepreneur.
If you see an unmet need in your community or a certain market vertical, becoming a founder is a fantastic idea. My first book, “The New Builders,” published in 2021, explores entrepreneurship in the US in depth.
College graduates are having an especially tough time getting jobs now. Is higher ed getting the job done, and what should institutions do differently to prepare students for the market?
Colleges and universities are very cognizant that students and parents are looking for value for their tuition dollar and that students want to be prepared for the job market when they finish school. The rise of AI is making this more challenging due to its impact on the job market, as well as how or whether it’s being incorporated into college curricula.
One of the biggest oversights is that we aren’t preparing students for careers that don’t require a college degree. Many secondary schools are implementing technical programs, but most parents still want their kids to have the college experience. The government could do much more to help public schools prepare students to make decisions about their college and career trajectories before they graduate from high school. I’d point to St. Vrain as an example of a school system that is really leaning into job preparedness. I wish more would follow that model.
You are a passionate cyclist. What is it about being on the bike that helps with your outlook?
Cycling is a fantastic outlet for me. A casual ride is the perfect way for me to clear my head or think through a nagging problem. I also really enjoy the competition of racing and the adrenaline boost it gives me. There’s a great community of cycling enthusiasts in Colorado, and I’ve made so many friends over the years.