"I have actually heard investors claim that if someone is able to sell them on a company, then they should be able to sell it to anyone. The problem with this line of logic is that it focuses more on the pitch — that is, the sales and marketing hype — than it does on the actual substance of a startup, or more importantly, its product."
"In fact, rather than rushing in headlong, VCs should approach hot areas with extra caution. And instead of seeking out copycat startups to add to their own portfolios, VCs should actively research the landscape and seek to build a unique, thoughtful, and nuanced perspective on the industry current and future. The best way to accomplish this is to spend time with academics, scientists, and research centers — the places where the real, down-and-dirty innovation is happening."
"Investors should also have, or hire people who have, a strong background in technology and science. This way they will be able to intelligently recognize and track major breakthroughs as they move from abstract concepts to real-world applications."
"So if you are looking to invest in the 'next big thing,' do yourself a favor. Step out of the bubble. Make connections not just within the tech community, but also within the wider scientific and academic communities. You’ll gain deeper insight into where technology and society are headed and the kind of innovation that is needed to move us forward, not incrementally, but in leaps and bounds."