When we hear about “startup investing,” we generally think of the big paydays that occur when an early-stage company is acquired or goes public – like Google, Facebook or Tumblr. And historically, it’s true: profits from early-stage investing have come from “exits” like an IPO or a big acquisition.
Every once in a while you come across an opportunity that seems like a “sure thing...” An opportunity where it feels like you’re looking into a crystal ball – where you can see the future playing out before your eyes.
Once or twice in every generation, a new invention will change the trajectory of entire industries – the assembly line during the industrial revolution, for example, or the Internet in the ‘90s.
In 1884, the folks erecting the Statue of Liberty ran out of money. Joseph Pulitzer, a big shot publisher, took to his “New York World” newspaper and encouraged Americans to donate so Lady Liberty could be completed.
Why the heck would Google invest $250 million into a start-up that’s basically a taxi service? Or here’s another one for you: Why would one man invest hundreds of millions of dollars trying to send ordinary citizens into space, or building a car company from scratch?