Uber and Airbnb are the biggest winners of the last cycle. Their markets are very different, but here’s what they have in common: both were fundamentally new.

Until Airbnb, no one had ever made it easy to rent someone’s spare room. And the first time I tapped on my phone and a car showed up, I wondered if I was dreaming.

These days, companies doing something totally new go to the top of my list.

My New Way of Judging Investments

As an investor, I look at lots of factors: market size, product quality, founder backgrounds, etc. But a moment in a recent episode of This Week in Startups stopped me cold.

“I’m looking for things that are new.”

Zach Coelius, angel

It struck me: this is what Uber and Airbnb really have in common. They weren’t slightly better versions of something else — they were fundamentally different.

“Is it new?” is a simple but powerful way to filter startups.

Fundamentally New vs. A Little Better

Uber and Airbnb provided fundamentally new experiences that people want. There might have been a company or two that had taken a shot at these markets (Taxi Magic and Couchsurfing.com come to mind), but no one had done it successfully.

Most startups aren’t like Uber and Airbnb.

They’re not doing anything new. They’re doing the same thing other companies do, a little better.

Well, they say it’s better. Their competitor probably says otherwise.

They wind up fighting it out over Google and Facebook ads to the same customer base. In the end, they burn lots of money and never really make it big.

Wrap-Up

There are a thousand ways to judge a startup.

How fast is it growing? How big is the market? What has the team done before?

But for me these days, the biggest question is “Is this new?” When I see something I’ve never seen before, that’s when I want to learn more.

What’s the coolest new tech you’ve seen lately? Leave a comment and let us know!

Have a great weekend, everyone!

If you enjoyed this post, subscribe for more like this!

More on tech:

If You Want to Raise a Series A, Cut That Burn

Look Who’s in Times Square!

How to Build Something People Want

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

Misfits Market

I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

I wrote a detailed review of Misfits here.

Use this link to sign up and you’ll save $15 on your first order.