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It's very often that investors get wrapped up in the hot business method rather than taking the time to think about how that might actually apply to the specifi
by JoshHenryKatz 14y ago
It's very often that investors get wrapped up in the hot business method rather than taking the time to think about how that might actually apply to the specific industry. They've seen how subscriptions and algorithms are going gangbusters for companies like Amazon, why not expand to an industry they know nothing about?
Most of these VCs are likely not coming from the garment industry, so they might know absolutely nothing about manufacturing or consumer experience. They try to pick based on things they know, and what companies they think might be similar. Much of the time, that's a very poor model for investment and they would be better of sticking to what they understand. At the same time, how many original investors actually understood what Facebook or Google were all about?