When I started investing, it mattered a great deal to me that I would build a portfolio of businesses in areas that I understand, care about and to which I can contribute. That led me to state that my main interests are environmental / cleantech, security and manufacturing / instrumentation.
But there’s a tension here. Investment is about making money, having fun and supporting businesses you care about. My background in technology has certainly taught me that there are easier ways to make money. I’ve heard it said that it’s better to invest in the users of technology than in the companies that generate technological innovation. I see how many investors in early stage technology companies take many years to realise value, and by contrast how others seem to get rich quicker on property, media and other non-technology investments. Or is the grass always greener…?
Whilst most of the prospective investments in my pipeline fit well into my ‘comfort zone’, I do have a few that have simply attracted me as good business propositions with a credible team.
I guess it’s a matter of personal taste and attitude towards diversification – what’s your perspective?