Investors need companies that don’t have much competition to start and that can build moats to prevent competition later. Startups whose success is predicated on a new, better technology rarely make the transition from innovator to dominant player. Technology in itself is usually not a moat, and companies that are based on introducing new technolog... See more

It’s tempting, as a venture investor, to back companies developing amazing new technologies. But this often doesn’t work out as well as investing in companies that are using existing technologies in a new way. New technologies have a larger long-term societal impact but new markets are better investments.