Differentiating between real trends and fake trends is crucial before investing in a new technology platform. Real trends are characterized by early adopters who use the platform obsessively and passionately recommend it to others. On the other hand, fake trends involve people buying the product but not using it enough. When the iPhone was first released, it initially had low sales numbers, but the early adopters loved it, used it for hours every day, and considered it central to their lives. This signaled a fundamental shift and the emergence of a new computing platform. Virtual reality (VR) is currently a fake trend, as most VR headset owners rarely use them. Intense usage by early adopters is a key indicator to consider before making a significant investment in a new platform. Additionally, startups should have at least one evangelical founder.
Sam Altman, President of Y Combinator, shares his thoughts on how you can succeed as a startup.