The Institution Is Dead. Long Live The Institution.

We’ve mentioned that the internet (social media) and new forms of labor (content) were contributing factors to the rise of creators. We’ve also discussed the rapid developments in technology (AI) that have and will continue to enable individuals and creators as the next class of great entrepreneurs.

But there is another societal – and seismic – shift that has led to the proliferation of individual-led efforts and creators: a growing distrust of the establishment across corporations, media, government, and even education. A generation raised against the backdrop of the 2007-2008 financial crisis was already disillusioned by the government’s response to corporate greed… and then came the COVID era. Unclear and often mixed public health guidance from officials and severe corporate layoffs were juxtaposed with arbitrary get-rich-quick schemes like meme stocks and digital monkeys. It’s unsurprising that many staid institutions lost their goodwill with the American public practically overnight. This groundswell of distrust has remained unabated – and is often intensified or activated by world events. Take, for example, the recent backlash against America’s top universities.

The small tears in the fabric of institutional brands don’t necessarily mean a complete unwinding of credibility; they have, however, certainly left space for the rise of alternative organizations across the many categories discussed above – often supported by a cultural influence, and driven to actualization by a single (notable) individual. Consumers’ willingness to trust an upstart product launched by their favorite creator over an established company is just the tip of the iceberg. We’ve seen individual-led efforts in media like MoNews from creator @Mosheh grow in popularity, or, perhaps more controversially, the launch of The Tucker Carlson Network. More recent examples target academia, including The University of Austin, Peterson Academy, and Elon Musk’s new university – all of which aim to take on the storied incumbents. While it’s difficult to predict the ultimate success of these ‘anti-institutions,’ their early audiences are likely drawn not to their inherent ‘betterness,’ but rather to their leaders and espoused values. In other words, they know upfront the principles on which their programs are built.

To be sure, major institutions still play a critically important role in our society. They are global brands with, in certain instances, hundreds of years of history, social capital, and goodwill. But as technology has allowed individuals the same reach and (in some cases) influence as these establishments, they can offer people another avenue that they may feel more aligned with. And if the success of programs like YC, Thiel Fellowship, or Emergent Ventures is any indication that people respond to new “brands” that carry significant meaning and clout, then the door for new institutions might be more open than we think.