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There are some very rich people out there deciding to move their money into tech. I wonder what's prompting that decision. Random theories: 1. Big Oil is done
by d4nt 9y ago
There are some very rich people out there deciding to move their money into tech. I wonder what's prompting that decision.
Random theories:
1. Big Oil is done. Battery prices have hit the tipping point and all cars will soon be electric. The traditional car companies are risky too, at least until the disruption ends and we can see who'll survive.
2. Banks haven't fixed anything, so the smart money is avoiding them.
3. They see no growth in consumer retail now that the cheap Chinese goods boom is over.
- mdorazio 9y agoA couple more for you: 4. Interest rates have been effectively zero for nearly a decade, making borrowing money cheap and also making getting a decent guaranteed return on your money hard. The net result is more speculation in riskier markets like tech VC. 5. If you're looking for outsized returns, there are few industries outside tech where this is a real possibility these days, compared to in the past.
- jacobr1 9y agoAlso 5B - to the extent there is innovation outside "pure tech," it is probably being sold as a tech play. Ag-Tech, Fin-Tech, etc ... Consumer-tech is already just tech, as is enterprise-tech, industrial-tech. With the disintermediation of vertical supply chains, any supplier of technical innovation is a "tech" company. Tech companies operate in nearly all industries.
- abakker 9y agoPersonal Theory: The boom of tech in the "knowledge work" era has pretty much stagnated, but we're deep in the very promising world of merging digital and physical world via sensors, drones, self driving/autonomous vehicles, and AR/VR. A lot of the business that gets most effected by the physical world stuff has been the least touched by the knowledge worker focused stuff (Cloud, apps, etc.)
- frandroid 9y ago...you mean the Internet of Things?
- imjk 9y agoThe interest rate in Japan, in particular, is literally zero.
- deleted 9y ago[deleted]
- Iv 9y ago4. Facebook, Apple, Google, have proven to the world of finance that big returns are possible and happen regularly in the tech world. It has high risk and high return. 5. People like Elon Musk or Masayoshi Son in Japan are leaders of opinion and, being very rich, they manage to convince other rich people that the future is into the tech they focus on. And thus it becomes a self-fulfilling prophecy.
- gist 9y agoThis is a simple one. It's hype, halo and what the press is talking about. Was watching a repeat of the Windows 95 launch last night. The publicity machine was in such high gear people were lining up (as they did for iphone) over shrink wrapped software as if it was the fountain of youth. That is the power of hype (and that has carried things to this point).