I've been asked the past couple of days where I see opportunity in terms of spaces to invest. Well, I wish I had an all-knowing crystal ball but I don't. So my best guess based on what I've seen the past 12 to 18 months and where I am focusing most of my attention is as follows:
I still believe the mobile sector in general is solid. We see that the growth of smartphones is continually speeding up and ever more people are accessing the internet via mobile. With flat data rates coming down in price and 3G networks expanding, you have a perfect opportunity for innovation. I am still bullish on this sector, although we've often seen ideas where we believe it may be too early. When it comes to innovation on the mobile, I am looking for things which solve large problem with simple solutions. Without giving up too much information, I have a couple deals in the pipe right now with cool ideas. In short, with the amount of time I see people around me daily playing around with their phones, I can't imagine some of the bigger exits not coming from this space.
I've said it before and I'll say it again. Customer service and customer retention are hot, whether someone is hyping it or not. I believe some of the best opportunities out there to innovate are around helping companies deal with their customers, deliver them the best possible service and make sure they don't leave. As examples, I love what Zappos does, I'm excited around the prospects for GetSatisfaction and I like the idea behind Spotfire software (owned by Tibco). Unfortunately, I am seeing too few exciting businesses in this space out of Europe at the moment.
Another space which I believe is improperly addressed to date is location based services. Once again, I may sound like a broken record on this one but I have faith. I want services delivered to me based on where I am. Unfortunately, I'm kind of tired of all these "see where your friends are" apps. They are interesting to an extent but there just isn't a business model. At the same time, I want a service that for example knows I'm at the train station or in the subway, which pushes information to me on routes and timetables based upon my previous travel activity. I'd love a service which tells me where people go to eat after having eaten at the restaurant I'm sitting at. Sense Networks are definitely on to something with their Citysense application. Track other peoples' activity, learn from it and fill me in. These are things I am willing to pay for.
There you have it. Hope this helps for those of you who asked. This is where I am focusing my search and am most excited about ideas coming out of these three areas. Nevertheless, I may be totally off on timing, hence I continue to track other areas opportunistically.
UPDATE. I did leave out one space which I was just asked about and that's cloud computing. Yes, in general I am looking at everything "cloud" but I find the segment too broad at the moment and can't say I've narrowed down where I'd place my bets. Further, I believe cloud encompasses so much of what's already out there. It reminds me a lot of cleantech a year or two ago. Everything and anything COULD be cleantech as long as it had a certain angle. I feel that is the case now for cloud computing. So, am I looking at it? Yes but with a very critical eye. Seems like a lot of repackaging is taking place at the moment.
