“We only invest in real technology.”
I am hearing this more and more among VCs recently. I dislike it a lot. I dislike it because it falls short of the reality we live in, ignores huge opportunities (through false assumptions) and has an arrogant / elitist undertone. It implies that, somehow, if your company does not have a strong technical / engineering aspect (“real technology”) you are somehow a less worthy startup or entrepreneur.
This is of course nonsense.
The way we view the world is that there are 3 engineering challenges:
- Technical engineering: you are solving a technical problem
- Social engineering: you are introducing a new social / human behaviour or making it easier / better to act in a social way
- Economic engineering: you are introducing a new economic behaviour or making it easier / better to perform economic transactions
This is very simplified but you get the picture. All 3 can individually or combined create extremely valuable companies.
That’s why I don’t care if you are a “real” technology company or not.