The VC Field Guide

4When = Timing

Timing is a secret weapon in the thought process of the best venture capitalists and founders. It can be applied everywhere, but specifically within venture it is a major factor that can determine whether an investment will be wildly successful or fairly successful or a complete failure. For example, when we talk about the iPod as a successful product, one of the reasons it was possible was because of the timing. The iPod became a reality because we had hard drives that were more resistant, more durable, that we could hold in our hands and shake around without crashing. So the iPod physically and technologically was not possible before a certain period of time, even though the need was always there and the interest was always there.

Another dynamic is also sometimes there's a new problem and a new solution and the interest is there, but the budget is not there. For example, electric cars are a classic example right now and a lot of people are very interested in buying electric cars. The technology has been available for a long time to power cars with electricity, but it was a novelty for most people. We might see one on the road and say to ourselves, “I'm never going to buy that freaking thing, I would never spend $200,000 for a car that can only go a few miles. What would happen if I ever got stranded somewhere?” But then gradually, over time, technology, infrastructure, our trust, the cost, and our budget changed to align to purchasing electric cars and now ...