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>that had more to do with market adaption of social networks and mobile phones plus payment services than product innovation Not parent, but this seems to be k
by zaptheimpaler 9y ago
>that had more to do with market adaption of social networks and mobile phones plus payment services than product innovation
Not parent, but this seems to be key. Many say tech will be forever as innovative as it has been in past 10-15 years, but now it seems that all of that has simply been the effect of widespread adoption of the internet & smartphones, rebuilding parts of the economy on top it, and things are reaching saturation. Until there is another major breakthrough like that at the hardware level, we will see far less growth and unicorns.
- coffeemug 9y agoSo let's fund teams that are likely to come up with the next major breakthrough at the hardware level. "Putting finances first" is probably not the way to do it.
- ThomPete 9y agoPutting finance first means making solid businesses that solve peoples problem. If you don't capitalize on the innovations happening you can't help fund the next innovation. It's not that there shouldn't be innovation done but you can't build a market only on that.
- eldavido 9y agoThere's a middle ground here guys. If you're talking about 2-4 million seed rounds, sure, back a great team. But when you're talking about nine-figure equity raises, you probably need a tenable financial model. Another thing: software is high-margin. A lot of dumb VC is getting thrown into low-margin reinvention of relatively old business models (food delivery, hotels, livery), evaluated through software-like metrics. Maybe finances matter in low-margin scale businesses. It's just not as important in businesses based on pure software/design/IP-driven innovation.