Finding new opportunities from second order effects

Over the past decade, new platforms have driven down the cost of starting a tech business. For example, you don’t need to buy servers anymore – you can just host your site on AWS. And distribution has become immediate, efficient, and highly targeted thanks to Google and Facebook.

The impact extends beyond technology companies too. In just the past few years it has become a lot less expensive to start a new business in many other verticals. We are seeing new retail brands launch every day over Shopify and Instagram. New entertainment companies, like in eSports, are scaling fast thanks to YouTube, Facebook, and Twitch. And Uber has helped launch over 1K “virtual” restaurants.

It’s very hard to predict second order consequences. Benedict Evans did a very thorough examination of possible second order consequences that will ripple out from today’s changes in the automotive industry.

But when it comes to second order consequences from the tech world, a few things are clear. First, platforms that are breaking out have an even bigger opportunity to scale because of second order effects. And second, these platforms will help millions of entrepreneurs start new businesses in a way that was not possible before. These platforms are Shopify, Instagram, Twitch and Uber today, they might be new platforms like AR / VR, autonomous cars and crypto tomorrow.

We are excited to meet entrepreneurs that are going after these new opportunities and the platforms that are creating them.

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