Please tell us a little bit about your business — what is your company all about?
Coordisc is revolutionizing how markets operate by introducing Coordinated Discovery Markets (CDM), a novel approach to price discovery. CDM adds a highly intelligent and unbiased forecasting layer to existing markets. Instead of relying solely on supply and demand, we incorporate predictions from a diverse pool of forecasters, creating a more accurate and stable price signal. This translates to reduced transaction costs, increased efficiency, and a more transparent marketplace. Our pending patent, US20160358256A1, covers the core mechanisms of CDM.
CDM has the potential to transform a wide range of markets. For example, we’re exploring its application in emerging markets like the bamboo industry in East Africa, where price volatility can hinder sustainable development. We’re also working on a cutting-edge blockchain-based project (currently under NDA) that leverages CDM to create a more secure and transparent trading environment. CDM is designed to address fundamental problems with existing market structures, from information overload to the inherent risks of high-frequency trading, including the challenges of market manipulation and systemic risk.
Tell us briefly about your background and how you started your company.
My path to founding Coordisc began with a background in software engineering and a deep fascination with the intersection of mathematics and communication. I was particularly inspired by the work of Alan Turing, Claude Shannon, and Andrey Kolmogorov, who demonstrated a fundamental connection between physical reality, information, and how we communicate. Their work is embodied in the modern computer.
This fascination led me to explore the concept of consensus on a network. I then realized that by applying advanced algorithms and incorporating diverse perspectives, we could create a more efficient and reliable way to discover prices in many markets. This realization was so mathematically certain that I founded Coordisc to turn this vision into reality. That led to both patent work, which has now become a lawsuit, and global networking to find the partners required to get to market.
What are the top 3 skills needed to be a successful entrepreneur, and why?
Vision: You need to see possibilities others don’t and have the conviction to pursue them. For me, that vision is a more efficient and transparent marketplace enabled by CDM. This vision has driven me through challenges, including over 9 years of dealing with the USPTO.
Adaptability: The ability to pivot and adjust your strategies as you learn and face challenges is crucial. For example, our exploration of the bamboo market in East Africa started with a conversation about onions.
Persistence: Bringing new ideas to market is incredibly difficult. I’ve often faced skepticism and resistance, including in our dealings with the patent office regarding US20160358256A1. But my belief in the potential of CDM, whether for blockchain technology or bamboo markets, has kept me going. Persistence allows you to overcome those obstacles and ultimately succeed.
What are your plans for the future, and how do you plan to grow this company?
Our multi-pronged growth strategy reflects the complex landscape of market innovation and the diverse pathways to bringing CDM to the world. We’re simultaneously pursuing several key initiatives, prioritizing each based on its current traction and potential for success.
One key initiative focuses on securing the right partnerships to launch new marketplaces powered by CDM. This involves engaging with entities possessing the necessary capital and deep expertise in the target markets we’re pursuing. Building a new marketplace is complex, requiring more than just the core CDM platform, which is already fully programmed. It demands careful consideration of numerous factors, including navigating the specific regulatory landscape of each target market, which often requires bespoke platform adaptations. Beyond regulation, other market-specific customizations will likely be necessary to optimize the platform for the nuances of different commodity types, trading practices, and participant needs. Therefore, these partnerships are crucial in helping us navigate the regulatory hurdles, tailor the platform, and build the ecosystem of participants required for a successful launch. We’re currently engaging with potential partners who understand the transformative potential of CDM and are willing to collaborate on this complex but potentially highly rewarding endeavor.
A second key initiative involves actively working to protect our intellectual property through our pending patent, US20160358256A1. This patent is primarily focused on licensing to established market operators within its jurisdictional reach, who frequently acquire patents on market mechanisms. This represents a distinct and parallel path to market penetration.
These initiatives are not pursued in a rigid hierarchy. Instead, we maintain a flexible approach, dynamically adjusting our focus and resource allocation based on the progress and opportunities presented by each prong. We recognize that the path to market adoption may take unexpected turns, and we’re committed to remaining agile and responsive to the evolving landscape. We believe this dynamic and adaptable strategy—balancing new marketplace development with licensing opportunities—is the most effective way to realize the full potential of CDM and transform how markets operate.
How did the pandemic impact your business, and do you feel like you have completely exited
the other side?
The pandemic unexpectedly highlighted the vulnerabilities of existing market systems. The volatility and disruptions in many commodity markets underscored the need for more resilient and efficient solutions—this increased interest in our technology, including those exploring applications in areas like blockchain and developing economies. We saw a significant uptick in inquiries from market operators and regulators looking for ways to improve market stability. CDM is designed to address these vulnerabilities, including those related to systemic risk and market manipulation.
While the pandemic has subsided, the increased openness to innovation in financial markets remains. We’re currently working with several organizations that are actively exploring how CDM can enhance their market operations, from regional products to those seeking to build new market infrastructure using blockchain.
How do you separate yourself from your competitors?
Our CDM technology is unique. We’re not just improving existing market structures; we’re fundamentally reimagining how markets can operate, which gives us a significant advantage over traditional market operators.
What were the top three mistakes you made starting your business, and what did you learn from
them?
Believing that investors would be interested in huge returns and learning that many are not. Learning that anything affecting the status quo is a deal-breaker. I’ve also had people argue that the existing markets don’t need customers, so even if all the producers and consumers preferred my offering, it still wouldn’t matter as they would have no choice but to continue using the existing markets.
Underestimating the regulatory challenges: I learned the importance of engaging with regulators early. Regulatory compliance is the primary cost of starting and operating a marketplace.
Not communicating our value proposition clearly enough: I learned to tailor our message to different stakeholders. For example, when talking to those interested in the bamboo market, I emphasize the potential for CDM to reduce price volatility and promote sustainable growth. When talking to stakeholders in the blockchain space, I focus on the benefits of security and transparency.
Tell us a little bit about your marketing process; what has been the most successful form of
marketing for you?
Our most successful marketing has been through energetic serendipity – writing papers, speaking at conferences, and engaging directly with potential partners in the financial industry. Given the complexity of our offering, education-based marketing has been key. This leads to inevitably torturous chains of cause and effect. For example, I talked to one of my college economics professors; he introduced me to one of his recently graduated students, who in turn introduced me to a colleague of his who had a business working to create markets in recycled materials who in turn introduced me to a friend of his that went on to raise money to launch a DAO that will incorporate CDM technology in managing itself. The tale of the eight months of description simplification dovetailing with searching for a patent lawyer that could even understand what the machine was doing included introductions through LinkedIn, being overheard in a coffee shop, and getting a favor from a presenter at a conference while we wound up leading a workshop for students.
What have been your biggest challenges, and how did you overcome them?
Our biggest challenge has been overcoming skepticism about a radically new market structure. We’ve addressed this by developing rigorous mathematical proofs of our system’s efficacy and running extensive simulations to demonstrate its benefits.
What are you learning now? Why is that important?
I’m currently deepening my understanding of regulatory frameworks in different global markets. This is crucial as we look to expand our technology internationally.
If you started your business again, what things would you do differently?
I wouldn’t have pursued VC or other investors and instead targeted licensure more aggressively. The thing about VCs that they don’t advertise is that they are only interested in buying scale. They want to get into businesses that can scale a great deal and that cost a lot of money to grow. That way, they can buy the company on an installment plan, e.g., consider what small slices of their companies Mark Zuckerberg and Jeff Bezos own. A Fintech idea with high scaling costs is a Ponzi scheme. The existing incumbents are much more interested in intellectual property plays. Focusing exclusively on IP early on may have accelerated the more valuable types of partnerships I’ve achieved.
What’s a productivity tip you swear by?
Deep work sessions: I block out 3-hour chunks of uninterrupted time for complex problem-solving and strategic thinking. Mathematical and physical research is ongoing at the forefront of the possible. Since most of the brains aren’t in my skull, most good ideas aren’t either. So, I do a lot of reading and then even more thinking to keep as many of them as possible to think about. For example, the Leela project is automating the concept of induced strategic precariousness to play odds chess. This has some interesting implications for behavior when one is in a disadvantageous position.
What is your favorite quote?
“The best way to predict the future is to invent it.” – Alan Kay.
What valuable advice would you give new entrepreneurs starting out?
Don’t be afraid to challenge established norms if you genuinely believe you have a better solution. But also, be prepared to prove your concept rigorously. One thing to remember about advice is that people and situations are different. The standard advice for those wanting to be entrepreneurs is to find customers, fill their needs, and then make your product. I’m doing it precisely backward, which is much more complicated because I wasn’t trying to become an entrepreneur. I learned more about math and physics and built something to test my knowledge, which will increase the efficiency of markets by a factor of more than 1,000. I didn’t think that was possible when I started, but once you know that you must do something about it, and the current culture insists on entrepreneurship.
What is your definition of success?
Success for me is seeing Coordinated Discovery Markets widely adopted and significantly impacting global economic efficiency.
How do you personally overcome fear?
I learned a meditative technique while reading The Book of Five Rings and The Right Stuff. It involves exposure therapy.
How can readers get in touch with you?
Readers can reach out to me via email at noahphealy@yahoo.com or connect with me on
LinkedIn.
Email: noahphealy@yahoo.com
LinkedIn profile: https://www.linkedin.com/in/noah-healy/
Website: https://www.coordisc.com/
