Focusing only on trendy sectors leads to intense competition where the vast majority of startups fail. True opportunity lies in contrarian ideas that others overlook or dismiss, as these markets have fewer competitors.

True investment courage isn't just writing the first check; it's being willing to invest again in a category after a previous investment failed. Many investors become biased and write off entire sectors after a single bad experience, but enduring VCs understand that timing and team make all the difference.

During a fundamental technology shift like the current AI wave, traditional market size analysis is pointless because new markets and behaviors are being created. Investors should de-emphasize TAM and instead bet on founders who have a clear, convicted vision for how the world will change.

AI tools drastically reduce the time and expertise needed to enter new domains. This allows startups to pivot their entire company quickly to capitalize on shifting investor sentiment and market narratives, making them more agile in a hype-driven environment where narrative alignment attracts capital.

In rapidly evolving markets like AI, founders often fall into psychological traps, such as feeling they are too late or that funding has dried up. However, the current environment offers unprecedented organic user demand and technological leverage, making it an ideal time to build if you can ignore the noise.

When an idea is met with a "wall of skepticism" from investors, it can be a positive sign of a good, non-obvious market. If every VC immediately validates your idea, it's likely too obvious and crowded. Proving early skeptics wrong with traction is a powerful path to building a defensible business.

When evaluating revolutionary ideas, traditional Total Addressable Market (TAM) analysis is useless. VCs should instead bet on founders with a "world-bending vision" capable of inducing a new market, not just capturing an existing one. Have the humility to admit you can't predict market size and instead back the visionary founder.

Many engineers at large companies are cynical about AI's hype, hindering internal product development. This forces enterprises to seek external startups that can deliver functional AI solutions, creating an unprecedented opportunity for new ventures to win large customers.

Periods of intense technological disruption, like the current AI wave, destabilize established hierarchies and biases. This creates a unique opportunity for founders from non-traditional backgrounds who may be more resilient and can identify market needs overlooked by incumbents.