Tim Draper argues founders should target massive, entrenched industries. He cites Hotmail disrupting the post office, Skype taking on telecom, and Google replacing research and advertising, urging entrepreneurs to go after something very big like venture capital or investment banking.
Chapters
Here's what I look for for an entrepreneur. I'm looking for somebody who breaks down walls. These companies like the post office was broken. All these things I thought would be here forever. I thought the post office, Ma Bell, trade, the neighborhood would all be exactly the way they are. They were when I was growing up. I didn't think things changed. And then all of a sudden Hotmail blew out the post office, you don't have to write letters and lick the stamps and you guys probably haven't even done that in your lives and don't because it's like poison. Telecom business got turned on its ear because of Skype. Trade, all trade has changed because of eBay. The neighborhood has changed because of Facebook. I asked my son when he was about 12 years old, I said, why don't you go out there and play with your friends? And he goes, I am, Dad. And he was sitting there looking at his Facebook page. And then research, advertising, libraries, whatever, Google has just kind of blown all those things out. So when you go after something, make sure you go after something very big. As an iconoclast, go after something big. So I'll give you a few examples of things you might want to go after. Venture capital, investment banking, wherever there is sort of a monopoly, go after that, go blow it up.