Tim Draper explains what he looks for when funding startups. He prioritizes the people behind the company, then seeks technologies that can disrupt industries like Big Pharma, insurance, and banking that charge high prices for poor service.
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The most important trait for any startup are the people. But before we meet the people, we have to filter through all the opportunities and come to the ones where technology is unique as it applies to a market that needs transforming. We're looking for new technologies to wedge into markets that are currently only covered by incumbents, and those incumbents are providing generally bad service at a high cost. Big Pharma comes to mind, big insurance companies. to mind. Big banks come to mind. Big accounting comes to mind. And government. Government's a bunch of monopolies and they're providing bad service at a high cost. Those are the industries I'm looking at transforming, and I do it by funding entrepreneurs that are going into those industries with a really interesting new approach and a new technology that provides better service for their customers.