To recap some of the qualities of the PayPal mafia: high-quality people, a common bond, an ethos of sharing and cooperation, concentrated in a region and industry. These make it rich in opportunity flow, and the same factors make any network and association worth your while.
» sounds like the Anthemis ecosystem… +1(via hackingfinance)
The most ambitious component is a pair of opt-in energy-saving programs that kick in when demand for energy is at its highest. When these periods roll around, Nest owners can rack up extra savings by letting the thermostat intelligently decrease their household’s energy needs. And it’s not just the homeowner who benefits: Nest’s new features are also intended to serve another class of customers entirely: the utility companies.
Great companies are vibrant, they can hardly contain themselves. It’s because they’re made by believers who want to find other believers and convert the rest.
So many folks in the venture capital business are sheep that just want to follow the herd. They are momentum investors purchasing highly illiquid investments. That is a recipe for disaster. Momentum investing works in highly liquid markets (sometimes). From what I can tell, it almost never works in private markets.
Many of the sentiments of this post by Fred remind me of my Mad Ones post from last year. You cannot succeed long-term as an investor if you are taking the safe route. As Paul Graham said in one of his essays,
If we ever got to the point where 100% of the startups we funded were able to raise money after Demo Day, it would almost certainly mean we were being too conservative.