Investing Means Investing in ‘the Day After Tomorrow’

I listened to episode 77 of M觀點’s Investing Is Hard. Its NVIDIA-versus-Tesla analysis has much in common with this article. Miula says he focuses on three things when investing: 1. Industry prospects and trends. 2. The company’s moat and barriers to competition. 3. Management capability. When approaching VCs, you must also explain: 1. Industry structure and future development trends. 2. Why the management team deserves investment: distinctive advantages, long-term accumulation, experience, and how you faced and resolved past difficulties and obstacles. 3. Why you will succeed rather than other giant competitors. 4. Validation already completed and feedback received. ---- Investing means investing in ‘the day after tomorrow.’ Yesterday is already past; venture capital generally does not focus on the past. Today already has many people doing the work and many others investing. Competition is fierce. Tomorrow is also relatively mature, and valuations have often risen sharply. It is unsuitable for small investment firms and may already be at the final mile of Vision Fund-scale spending. The day after tomorrow is faintly taking shape but is not entirely clear. Investment pricing is still at the first or second round, with substantial room for future development. This is generally the point that most excites venture investors.