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Tech, as used by investors no longer really means technology. It means a website essentially. It would rarely (in my experience) even encompass hardware. Certa
by comstock 9y ago
Tech, as used by investors no longer really means technology. It means a website essentially.
It would rarely (in my experience) even encompass hardware. Certainly nothing requiring novel basic technology (science based startups).
I don’t know why terminology is used like this. Essentially it’s like saying mail order catalogs are technology companies because they take advantage of advances in printing, telecommunications etc.
I guess it’s because the process of building websites is still messy, and somewhat easy to get wrong.
- CalChris 9y agoHe definitely used the word patents. So I really think he means new technology when he says tech rather than websites, deployment, logistics, ....
- comstock 9y agoWell, he uses the word patents in a context which suggests he doesn’t care much about patents... The examples cited in the article are mostly websites. And I think (given the title of the article) he would describe himself as a tech investor. In any case, what investors say isn’t as important as what they do. In my experience they often say they are interested in Biotech, Science based startups, or hardware. The reality is they rarely invest, and when they do, they invest in very conversative plays (aside from the occasional misguided Theranos type play). The reality is in general tech to then means “some kind of website where I understand the engagement metrics” most of the time.
- tootie 9y agoI think "digital" is more accurate than "tech" now. And even then it's not always accurate. Is Uber a tech company or a taxi company? Is AirBnB tech or hospitality? Very few of the companies we call "tech startups" are actually producing tech as an output. More like they are solving technical challenges to increase efficiency or create market niches in traditional industries.