Trends for investment - Salil Deshpande
Date: Thursday , May 07, 2009
Almost everyone can see the major trends from a mile away. And they take years to play out, providing sufficient opportunity for entrepreneurship and investment. Death of newspapers and transition to online media; transition of software to SaaS and open source; virtualization and clouds; applications over social graphs; political and financial tailwinds behind energy efficiency, are a few opportunities to name.
However, I prefer not to chase trends per se, and rather, focus on the sectors that I know and understand. That forces me to accept sector performance as a baseline, and create extraordinary businesses within the sector, to outperform.
Advice to entrepreneurs
There are always new areas of opportunity, and now is a great time to start a business. Among many random pieces of questionable advice what I inadvertently dole out to entrepreneurs is: your first business should not be venture-backed, but your second business should be.
Salil Deshpande is Partner, Bay Partners