In Episode 40 of Y’all Street, host Tarek Saab speaks with Evan Baehr, founder of Arena Hall and co-author of Get Backed, about the emerging asset class of community building.
Evan Baehr, a seasoned entrepreneur and venture capitalist, introduces a novel concept known as “Community as a Service” (CaaS). This framework aims to address the growing loneliness epidemic while also serving as a potential new asset class that investors can consider.
Understanding Community as a Service: A New Approach to Asset Allocation
Baehr positions CaaS as a mechanism to build social capital, which is increasingly recognized as a critical component for economic resilience. He cites the decline of traditional civic organizations and how their absence has created a void that startups and innovative communities are now starting to fill.
Evaluating the Correlation Between Community and Financial Performance
In his conversation with Tarek, Baehr highlights the importance of trust and relational capital in successful business ventures. He emphasizes that investors are not just underwriting financial models; they are investing in narratives that draw on the Hero’s Journey, which can enhance after-tax yield through increased engagement and customer loyalty.
We believe that when we actually deliver on the purpose…it is actually the perfect vector that drives their renewal, increases their willingness to pay and increases their likelihood of referring other people.
Evan Baehr
Arena Hall exemplifies this model by creating a physical hub that fosters collaboration among entrepreneurs and investors. Baehr argues that by creating spaces where individuals can build meaningful connections, the returns can extend beyond traditional financial metrics, potentially leading to better portfolio allocation across different asset classes.
Investing in community-driven models can offer nuanced trade-offs, especially when compared to conventional asset classes. As Baehr’s vision unfolds, sophisticated investors may find these new vehicles provide a hedge against market volatility, particularly as urban centers evolve post-pandemic.
