Introduction
The role of an investor is one of intellectual curiosity and always looking for interesting trends. Developing these opportunities can evolve from an industry to a trend within that industry. You can know the e-commerce is only 16% of all retail. That's an industry with a lot of growth potential. Within e-commerce you may identify a trend: finding new ways to acquire customers, for example SMS as a new marketing channel.
You can develop some of these themes and ideas by spending time coming up with business ideas and themes that interest you. Thinking about these business ideas conceptually can give you the opportunity to think through different aspects of these models. Looking at different "Request for Startups" lists can be the starting point.
Evaluate the investment themes of other firms and investors. What are they paying attention to? How do they codify those lines of thinking?
Examples
Automation Outline
Automation RPA is a commodity. Pure-play RPA vendors (UiPath, Automation Anywhere, Blue Prism) grew quickly (UiPath's pace to $100M ARR was blistering), devoured funding (UiPath has raised $1B), and were rewarded with massive valuations. But now they are stuck selling a commodity at best, or wor...
docs.google.com
SFR Overview
A generational mispricing of single-family homes following the global financial crisis of '08-'09 allowed a few players to fast-track the 0-1 phase of company building and aggregate massive portfolios of homes in an incredibly short period of time. In the words of Invitation Homes CEO Dallas Tann...
docs.google.com
SFR Deck
Single Family Rentals Subscription Culture + Demographic Tidal Wave + Creation of New Real Estate Asset Class = Greatest "Pick" for Next 5 - 10 Years
docs.google.com
NYT v2.0
NYT What's the News? Warren Buffett said it best: "News, to put it simply, is what people don't know that they want to know." News is a type of content, but the newspaper business of old wasn't a content business, it was an advertising business masquerading as a content business.
docs.google.com
2020HealthcareReport.pdf
drive.google.com
Tips and Tricks
- Keep a list of "Portfolio Ideas"
- Keep a list in your note taking system of all these different business and themes. Start to build a personal file of all the things relevant to that theme. Continue to flush it out. Think of constructing a portfolio, but instead of a portfolio of companies you're crafting a portfolio of ideas. Pay attention to your portfolio ideas.
- Practice predicting the future
- There are a number of people and sources who are making predictions of what is going to happen in the future. Pay attention to how people present those predictions, what they believe will become important going forward.
- Call your shots
- As you build a library of ideas and themes take the time to articulate your ideas somewhere public (blog, twitter, etc.) Build a "fantasy portfolio" of companies that you really believe in. Even if you don't have money to invest, use it as a way to plant your feet somewhere and have an opinion.
The Why and How of Wanting To Be a VC: a Thread of ThreadsWhat People Are Saying
Recommendations
An Aspiring VC's Guide to Building an Investment Thesis
As 2016 closes, I will share insights associated with the methodology and outcomes of my 3 (edtech, fintech, real estate tech) updated investment theses. The goals of "Notes on a Thesis" are to 1) present my research, 2) connect with relevant founders, 3) cultivate a discussion around the thesis, and 4) provide templates for aspiring VCs.
medium.com
Investment Thesis Collection from Venture Capital Firms -
The VC world is murky. The innards rarely see light. I just had an advisory call with some chaps setting up a fund and they asked about fund structuring (not the first time). When I mentioned ' This is not something you can Google.' They laughed and said ' yeah, we know!'
www.alexanderjarvis.com
The Ultimate Guide for Becoming an Idea Machine - James Altucher
The way to have good ideas is to get close to killing yourself. It's like weightlifting. When you lift slightly more than you can handle, you get stronger. In life, when the gun is to your head, you either figure it out, or you die. When you cut yourself open, you bleed ideas.
jamesaltucher.com
