Here’s Why I Avoid Trends, as a Professional Investor

What trend or chance are you most inquisitive about as associate capitalist, today? originally appeared on Quora – the data sharing network wherever compelling queries are answered by folks with distinctive insights.

Answer by Peter Fenton, General Partner at Benchmark, Dad, aspiring Cellist, on Quora.

I don’t invest in trends. I do know it sounds to a small degree too-cool-for-school however what I’ve found is that you just get much more insight from purpose than from trends. So, for instance, within the case of labourer, I endowed in Dotcloud (which became Docker), within the purpose of this radical, intense leader, Solomon, UN agency wished to offer the world’s programmers superpowers, tools of mass innovation. within the case of Yelp, it had been Jeremy’s purpose to permit for the reality of nice (and bad) native businesses to be visible to any or all. Or after I met Jack in 2007, he had this unstoppable purpose for Twitter to “bring you closer”. typically that purpose is simply this raw force, an energy, am passionate about it was within the case of carriage at Elastic in 2012. after I desire the trend, the space, the ideas vs the tactile reality of a purpose forms the narrative of the investment I lose all interest.

Another way to appear at this is often that I’ve found the most effective entrepreneurs have discovered preconditions that alter their purpose, that build it doable these days versus in 10 years. to extend the chances of finding the extraordinary, it helps to own some extent of read concerning the foremost dynamic preconditions. As my partner Matt Cohler says, “to see this most clearly”. clearly mobile omnipresence is that the major precondition these days, with the extra attributes of GPS, top quality cameras, and ever up networks. I don’t assume we’ve even began to understand the potential of this increased mobile omnipresence. Another precondition is social behavioural norms, our readiness to share, to have interaction expands in what seems like a geometrical method once the conditions ar right. associate “all cloud” world is another precondition — it forces each layer of the technology stack to be reconsidered and in several cases reinvented for the cloud. Mass cypher and mass storage may be a precondition for machine learning at scale.

To make this additional concrete, take the instance of Houseparty. Ben’s a rare businessperson, he’s moved by a purpose to create you’re feeling nearer to your friends once they’re not physically gift, and he features a contemporary, new approach victimization live video. The preconditions of live video open up this world of exploration and also the right entrepreneurial mind figures it out. I deeply regret not being his investor!

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