The Ambitious Pursuit of Startup Cities: Pronomos Capital's Unconventional Vision Backed by Tech Titans

Pronomos Capital, a venture capital firm founded in 2019, is making waves in Silicon Valley with its audacious mission to fund and unite startup cities around the globe. Boasting a notable $13.3 million in funding from influential figures like Peter Thiel and Marc Andreessen, the firm, led by Patri Friedman, grandson of renowned economist Milton Friedman, aims to reshape urban development and governance models.

While its website may exude a minimalistic facade, Pronomos Capital harbors grand aspirations—to create a network of privately owned and operated cities in developing countries. These cities would serve as experimental grounds for novel business models, government structures, and even medical treatments, all shielded from traditional regulatory frameworks.

Friedman frames the venture as philanthropy, emphasizing the mission to "alleviate global poverty with startup cities." However, skepticism abounds, with critics viewing it as a colonial endeavor. Sarah Moser, a geography professor at McGill University, characterizes it as a "boys-only treehouse" where tech enthusiasts can experiment without accountability. The proposed projects, from a high-tech utopia in the Mediterranean to a crypto paradise in Honduras, have sparked both interest and controversy.

As Pronomos Capital's vision unfolds, backed by influential backers and shaping the discourse on the future of urban development, the debate surrounding its true intentions and impact on global governance continues to intensify.

Patri Friedman: The Maverick Mind Behind Pronomos Capital's Startup Cities

Patri Friedman, at 47, stands as the grandson of the illustrious Milton Friedman, a luminary of the Chicago School of Economics and a staunch advocate of free-market principles. Patri has taken the capitalist legacy to new frontiers, embodying an eclectic mix of traits, from crypto enthusiast to biohacker and self-proclaimed "anarcho-capitalist." His explorations extend to experimental medical techniques, including gene editing, showcasing a penchant for pushing boundaries.

Before relocating to Austin earlier this year, Friedman's unconventional lifestyle included a stint in a polyamorous commune in Mountain View, California, co-created with other couples. Although he later embraced monogamy, his journey reflects a quest for alternative ways of living. Dissatisfied with existing options and frustrated with the U.S. political landscape, Friedman sought unconventional solutions.

In a 2020 podcast interview, Friedman expressed his disillusionment with the U.S. political system, citing a minority viewpoint in a democratic setting. This discontent led him to explore novel living arrangements, and in 2008, he founded the Seasteading Institute—an audacious initiative advocating for independent nations on the ocean. Backed by a $1.7 million investment from Peter Thiel, a notable GOP donor with a penchant for unconventional societies, the Seasteading Institute gained attention, even though the concept faced engineering challenges.

Friedman's journey continued with a foray into Future Cities Development, Inc., an incubator for charter cities in Honduras. However, legal setbacks, with the Honduras Supreme Court deeming privately run cities unconstitutional, halted the project in its tracks. Friedman, resilient as ever, liquidated the company and returned to his roots as a software engineer at Google.

As the maverick mind behind Pronomos Capital's startup city venture, Patri Friedman continues to shape the discourse on alternative governance models and urban development, blending his familial legacy with a relentless pursuit of unconventional solutions.

Tech Exodus: Thiel's Endorsement and Pronomos Capital's Dark Motivations

Peter Thiel's unwavering support for Patri Friedman's ventures, despite previous setbacks, became evident in 2019 when Pronomos was introduced. Thiel, alongside prominent tech figures such as Andreessen, Roger Ver, and Balaji Srinivasan, invested $9 million in the startup. United by a shared enthusiasm for technology and cryptocurrencies, these investors also harbored a collective disdain for government regulation. However, beneath these commonalities lies a more profound and ominous sentiment: disillusionment with contemporary American society and a shared desire to escape its confines.

Balaji Srinivasan articulated this sentiment in a 2013 speech at Y Combinator, titled "Silicon Valley's Greatest Exit." In it, he asserted that the tech sector had surpassed industries like the press, finance, Hollywood, and even the government in power and importance. Srinivasan prophesied that as tech titans grew stronger, jealousy and blame would be directed at them for societal issues. The solution, as he saw it, was a strategic exit—an opt-in society outside the U.S., governed by technology. This vision of "Silicon Valley's ultimate exit" gained traction, suggesting a departure from societal responsibilities in favor of a techno-centric governance model.

This notion of "exit" has gained momentum, influenced by neoreactionary philosophers like Curtis Yarvin and Nick Land. Yarvin advocates for a shift from democratic governance to a business-like structure, with a CEO at the helm and residents devoid of votes or voice—only the option to leave. Land, another far-right philosopher, encapsulated the theory in his 2012 essay on "The Dark Enlightenment," emphasizing the principle of "No voice, free exit.

As Pronomos Capital forges ahead with its startup city endeavors, backed by investors with complex motivations, the intersection of technology, governance, and societal disillusionment takes center stage, shaping a narrative that transcends mere urban development.

Pronomos Capital's Startup Cities: The Architecture of Exit and Governance as a Product

The emergence of startup cities, including those championed by Pronomos, introduces what researcher Robert Burrows terms "the architecture of exit." These urban experiments provide physical avenues for individuals to escape existing governance structures and embark on new, experimental ones. Influenced by philosophers like Curtis Yarvin, who advocates for a marketized governance model over democracy, the challenge becomes transforming government into a commodified product—one that people can selectively choose.

Patri Friedman, aligning with Yarvin's philosophy, views governance as akin to software, a tech product deployable in different markets at a low marginal cost. In a 2002 article, Friedman proposed creating new governments to foster competition and enhance outcomes. He envisions startup cities as laboratories, offering blank spaces for free thinkers to experiment with diverse forms of governance, ultimately improving the lives of the local population.

However, Friedman faces resistance from those adhering to traditional models of morality, representation of the people, and national identity. Despite accusations of promoting "exit over voice," he contends that both complement each other, with exit being the weaker option at present. In response to critiques, he emphasizes over two decades of work enabling new ways of communal living and a current focus on alleviating global poverty.

The synergy between Friedman and Peter Thiel becomes apparent in their alignment with Yarvin's anti-democratic philosophies. Thiel, a repeat investor in Yarvin's startups, publicly declared in 2012 that he no longer believes freedom and democracy are compatible. Thiel's investment patterns and symbolic gestures, like a sculpture in his office depicting himself as a knight battling "Fair Elections" and "Democracy" monsters, underscore his divergence from democratic ideals.

While Friedman asserts the philanthropic goals of his venture, the alignment with Thiel and Yarvin's ideologies raises questions about the true motives behind Pronomos Capital's startup cities and their potential implications on governance and societal structures. Thiel's silence in response to inquiries leaves room for speculation on the depth of his involvement in this unconventional vision for the future.

Pronomos Capital's Ideological Tapestry: Yarvin, Srinivasan, and the Praxis Venture

Patri Friedman's connection to Curtis Yarvin, known as Mencius Moldbug, has roots in a 2009 essay where he listed Yarvin's blog as suggested reading. Later, in a Facebook post, Friedman praised Yarvin for inspiring "an entire school of red pill political philosophy." This alignment with Yarvin's neoreactionary ideas extends to Balaji Srinivasan, a Pronomos adviser, who also associates with Yarvin. Srinivasan once suggested deploying the "Dark Enlightenment audience" to target a reporter, according to The New York Times.

Robert Burrows, a researcher, characterizes the ideology as a form of fascism, emphasizing its application of corporate models to everyday life while neglecting essential non-modified aspects like care, emotion, and human attachment. Some of these theories appear intertwined with Praxis, a startup city concept backed by Pronomos in 2021. Founded by college dropout Dryden Brown and former Boston College wide receiver Charlie Callinan, Praxis aspires to be a 10,000-person "city of the future" somewhere in the Mediterranean.

Praxis gained attention through recruitment parties attended by downtown influencers and coverage from outlets like Air Mail and New York magazine. Brown's vision for Praxis was reportedly crystallized during the 2020 Black Lives Matter protests in Soho when he witnessed looting and feared for his safety in his apartment. His advocacy for a return to old-world European societies is evident in branding materials emphasizing "traditional, European/Western beauty standards" as a foundation for success in the civilized world.

As Pronomos Capital navigates its investment landscape, the intertwining of ideological threads raises questions about the motivations behind startup cities and the potential influence of neoreactionary philosophies on governance models and societal values. The eclectic mix of tech enthusiasts, neoreactionary thinkers, and venture-backed urban concepts forms a complex tapestry that shapes the trajectory of Pronomos Capital's unconventional vision.

Praxis: Unraveling the Claims and Controversies Surrounding Pronomos Capital's Ideological Venture

Amid controversies and conflicting accounts, Praxis, a startup city concept backed by Pronomos Capital, faces scrutiny over its alleged ideological underpinnings. Denying claims made by former employees and media reports, Dryden Brown, Praxis co-founder, refutes statements about political beliefs, including assertions about monarchy superiority and an ideal form of democracy described as "authoritarian fascism." Despite raising substantial funding from investors like Pronomos, Balaji Srinivasan, the Winklevoss twins, and Sam Bankman-Fried, Praxis is yet to manifest physically.

The parent company, formed in 2019, claims to be finalizing its first partnership with a host government, anticipating a move-in date of 2026. However, the location remains undisclosed, and the only citizenship offering is a "visa" granting future land ownership rights. Allegations of extremist influences, such as encouraging staff to read Julius Evola's work and promoting Bronze Age Mindset, a book associated with white supremacist communities, further cloud Praxis' image.

While Praxis grapples with ambiguity and internal strife, another Pronomos project, Próspera, located on the Honduran island of Roatán, faces legal battles with its host government. Conceived by libertarian advocate Gabriel Delgado and Erick Brimen, a Venezuelan with a shared passion for treating government as a business, Próspera aims to be the "fastest-growing private city project in the world," emphasizing a decentralized private government framework.

As Pronomos Capital navigates the complexities of its startup city ventures, the controversies surrounding Praxis highlight the challenges in reconciling ideological visions with the practicalities of implementing alternative governance models. The ongoing legal disputes and uncertainties cast a shadow over Pronomos Capital's ambitious pursuit of innovative urban development.

Próspera: Unraveling the Realities and Resentments in Pronomos Capital's Experimental City

Próspera, a city initiated with Pronomos Capital funding, offers a tangible example of the vision for a Pronomos-backed urban center. Commencing construction in 2020, Próspera boasts a low single-digit tax rate, a private arbitration center in lieu of a state-run court system, and governance by a nine-member council—four selected by the founders. The city permits companies to formulate their regulatory code, subject to council approval, attracting entities like Minicircle, an experimental gene therapy firm enticed by the promise of more lenient drug testing regulations.

Operating within a "special economic zone" (SEZ), Próspera benefits from more lenient tax and business laws, common in developing nations to attract international development. However, research suggests that SEZs can sometimes lead to an increased cost of living without proportional wage increases. The city's "radically decentralized" governance approach raises questions about its impact on the local population.

The SEZ status and development plans triggered concerns among nearby residents, particularly in Crawfish Rock village. Initially misled by developers presenting as a charitable foundation aiming to establish a community center, residents later realized the potential consequences of the development. Protests ensued, driven by fears of eviction or isolation from the island. In 2021, tensions escalated to the point where Próspera discontinued water supply, previously provided by its charitable foundation since 2019, further intensifying discontent.

Próspera's narrative underscores the complexities and conflicts inherent in the implementation of experimental city projects, reflecting the challenges Pronomos Capital faces in reconciling ambitious governance models with local realities and community sentiments.

Próspera's Troubles: Unveiling Discrepancies and Legal Battles

A spokesperson for the Próspera ZEDE, Jorge Colindres, countered allegations of inadequate communication with locals, asserting that they were duly informed through a neighbor's assembly resolution. Colindres dismissed reports of protests as "unfounded lies" by a few individuals and attributed the water supply suspension to pressure from these individuals. However, conflicting narratives suggest a more complex situation, with the foundation reportedly cutting off water after discovering attempts by local leaders to find an alternative source and demanding a written request for restoration, which the leaders declined.

Próspera, situated within a special economic zone (ZEDE) in Honduras, faced broader criticism and protests from residents nationwide, leading to heightened scrutiny. Presidential candidate Xiomara Castro campaigned against ZEDEs, and upon her 2022 election, the Honduran Congress, in collaboration with Castro, repealed the law establishing ZEDEs. This move received international praise from humanitarian groups and Human Rights Watch, signaling a significant policy shift.

In response to the repeal, Próspera filed a $10.775 billion lawsuit against the Honduran government, alleging a violation of international trade agreements by revoking the law. The case remains unresolved, introducing uncertainties regarding the future of Próspera. Despite legal challenges, the project's website continues to beckon those who "share our vision" to join the island paradise, acknowledging hardships as intrinsic to achieving greatness. The ongoing legal battle and conflicting narratives underline the intricate challenges Pronomos Capital faces in navigating the intersection of governance experimentation, legal frameworks, and local sentiments.

Itana's Ambitions: Navigating Challenges in Nigeria's Lekki Free Trade Zone

Pronomos Capital, undeterred by ongoing legal battles involving Próspera, continues its foray into startup cities within special economic zones. One such venture is Itana, situated in Nigeria's Lekki Free Trade Zone, where investors enjoy exemptions from taxes, customs duties, and levies. Described as the potential "Silicon Valley of Africa," Itana aims to foster a tech ecosystem with tax incentives for budding entrepreneurs. The project envisions a connected community with optimal governance, digital services, and physical infrastructure to empower builders on the continent.

However, the development has raised concerns, notably from Omolade Adunbi, a professor at the University of Michigan. Adunbi argues that free trade zones may exploit low tax rates and cheap labor, often to the detriment of native populations. He expresses apprehension about the potential displacement of communities, citing the location of Itana within Alaro City, where residences are priced significantly higher than the average yearly salary in Nigeria.

Iyinoluwa Aboyeji, the founding investor in Itana, emphasizes the project's primary goal as providing a jurisdiction for Nigerian businesses to incorporate easily, even if not physically based there. Aboyeji likens Itana's role to that of Delaware in the United States or the DIFC in Dubai, focusing more on the digital free zone than the physical infrastructure. While acknowledging the legal obligation to purchase physical property in the free trade zone, Aboyeji clarifies that construction is yet to commence and won't be financed by Pronomos. As Itana navigates its unique challenges, the balance between economic development and the preservation of local communities remains a critical aspect of its trajectory.

Lekki Free Trade Zone: Balancing Development, Displacement, and Accountability

The creation of Nigeria's Lekki Free Trade Zone, home to Pronomos Capital's startup city venture, Itana, has ignited concerns about the displacement of local communities. In 2004, the Lagos State Government expropriated land for the free trade zone, promising compensation, alternative acreage, jobs, healthcare, and educational opportunities to affected communities. However, international researchers highlight a significant gap between promises and reality. Of the 56 households slated for compensation, only a fraction received the funds, and the government failed to uphold various commitments.

Otunba Lapido Adeokun, chief of the Idasho tribe, recounts how his community faced eviction in 2006 when the government initiated the Lekki Free Trade Zone project. Despite assurances of alternative lands, existing occupants resisted settlement, leaving the displaced Idasho community scattered. Adeokun emphasizes the adverse impact on their traditional livelihoods of farming and fishing, with farmlands acquired and the Dangote refinery damaging the ocean. He notes that development, while potentially beneficial, has not improved the well-being of the poor in the region.

In response to land disputes, Iyinoluwa Aboyeji, founding investor in Itana, distances the project from events occurring 17 years prior to their land purchase, stating that responsibility lies with the Lagos state government. Aboyeji emphasizes compliance with legal obligations and suggests that issues surrounding the free trade zone are beyond his control. As the Lekki Free Trade Zone grapples with the complexities of development, questions linger about its impact on local communities, emphasizing the need for accountability, equitable compensation, and sustainable practices in future initiatives.

Tech Utopias and the Network State: A Global Vision Unfolds

As Pronomos Capital pursues its ambitious venture in startup cities, particularly the Itana project in Nigeria's Lekki Free Trade Zone, questions arise about the alignment of its goals with free-market governmental experimentation. Iyinoluwa Aboyeji, the founding investor in Itana, emphasizes collaboration with the Lagos state government while distancing the project from American cultural wars.

While Pronomos' cities face challenges gaining traction, the founders' ideas have expanded in both ambition and scope. Balaji Srinivasan, a key figure in the venture, envisions a Network State—a globally distributed but ideologically aligned state formed by individuals creating their own communities worldwide. This vision, outlined in a book endorsed by influential figures like Marc Andreessen, proposes combining disparate societies into a powerful, decentralized entity that transcends geographical boundaries.

Patri Friedman, another key figure and Pronomos founder, shares a similar long-term goal of creating the first venture-backed city-state, expressing a desire to rebuild and emerge as a formidable force. The ultimate vision includes merging island crypto paradises with libertarian Mediterranean oases, forming a tech-driven world power challenging established nations.

However, critics, including geography professor Sarah Moser, express skepticism, citing the consistent incompetence of startup city evangelists. Despite the grandiose visions, the feasibility and success of these ventures remain uncertain, leaving the global impact of such tech utopias an open question.

In conclusion, the vision of Pronomos Capital and its founders for startup cities, epitomized by projects like Itana, reflects a grand ambition to redefine governance and societal structures on a global scale. The alignment of these goals with free-market experimentation, coupled with the lofty ideals of forming a Network State, underscores a desire to transcend traditional geopolitical boundaries.

As the venture faces challenges and skepticism, particularly regarding the impact on local communities and the feasibility of such ambitious plans, the future of Pronomos' startup cities remains uncertain. The debate between the proponents of tech-driven societal transformation and critics questioning the practicality of these endeavors continues to unfold, leaving the potential emergence of a new kind of global power in the realm of speculation. Only time will reveal whether these visions will materialize as revolutionary innovations or remain as ambitious yet unrealized dreams in the evolving landscape of tech utopias.