This content was created by GHION.AI . This content was uploaded by GHION.AI . This is a YouTube video titled "Reid Hoffman: Investing in Long Term Ideas" created on July 20, 2011, featuring a talk by Reid Hoffman discussing the importance of investing in long-term projects and taking risks in entrepreneurial and technology companies, using LinkedIn as an example.
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Like one of the things that works really well while you're an entrepreneurial and private company and one of the things I'm working really hard to maintain at LinkedIn past going public is to make sure that you're actually both you're investing in the long term and taking risks. So what that means is doing projects that don't have an immediate like one to three month payoff in the data that are part of the general positioning of how you think the world is changing. So for example, part of the theory initially behind LinkedIn was that every individual is going to have a professional identity online that they will transact with as the business of themselves, both for their company and outside of that. And that that's how the future of the world is going to evolve. And even though there was no particular way of proving that theory back in 2002 and 2003, that that was a theory and that's what you kind of built into the future on and keeping those kind of future visions of this is what I think the world's going to be. And I'm going to take a risk that I think that my theory is right and I'm going to invest in it, even though I'm not going to be immediately rewarded within one to three months. And doing that selectively and taking those risks I think is the key form of doing investments. And it's one of the reasons why in technology companies you frequently see the company continuing to do well when it has still founder roles, eg, the founders usually, but other people who are willing to take that kind of three to five year risk in what they're doing and I think that's really critical.
