Tracxn Weekend Reads – 15th July, 2016

Every week, we at Tracxn curate some of the most interesting blogs and articles from the VC community. Here is a compilation of them that you can add to your reading list.

Why Startup Technical Diligence is a Waste of Time by Leo Polovets

“A well-built product that doesn’t solve a problem will always be inferior to an ugly, buggy product that addresses a burning need.”

Leo Polovets, Partner at Susa Ventures shares a viewpoint, drawn from his own personal experiences on why technical diligence is a waste of time. He contends that very few companies such as SpaceX, and Zoox bear a significant technical risk, while most consumer apps or SaaS tools have a low technical risk.

Read Leo’s post on why technical diligence is pointless here.

Is social dead? by Angela Tran Kingyens

“It’s difficult to convince someone to leave their 300+ friends on Facebook and start over on a brand new platform. It’s this moat that makes network effect companies so attractive to investors and entrepreneurs.”

Angela Tran Kingyens, Investor at Version One Ventures contends that we’ve hit peak social platforms, with strong network effects making it hard to unseat the incumbents. The post looks at how for companies can ride out the last vestiges of the original social wave through vertical niches though examples like Slack, Twitch, and Figure 1, or latch on to a new wave of Messaging-as-a-Platform companies like WeChat.

Read Angela’s post on opportunities in social networking here.

AR will be startup dominated, VR will not by Jerry Neumann

“I don’t believe virtual reality is a good area to venture invest. I do believe augmented reality is a good place to venture invest. There is a key distinction between the two in terms of the chokepoints in the value chain.”

With all the buzz surrounding Pokemon Go, Jerry Neumann, early stage investor at Neu Venture Capital predicts that augmented reality is a more investable area, compared to virtual reality. He analyses mediums like radio, TV and the internet; who held the chokepoints in the value chain, and forecasts the future for VR and AR content.

Read Neumann’s blog on whether VR and AR technologies will be dominated by startups here.

The Blockchain Expands, But It’s in Asia by Jeffrey Carter

“I am not sure you can ever “control” or “win” the blockchain. But, I think the economies that embrace it and maximize it will have a leg up on economies that fight it.”

Jeffrey Carter, an angel investor and independent trader writes about the growing enthusiasm for blockchain and cryptocurrency in Asia, with examples of tech companies who are getting into the blockchain business in China and Singapore.

Read Carter’s post on blockchain adoption in Asia here.

The NYC Tech Ecosystem: Catching Up to the Hype by Matt Turck

“New York is in the process of catching up to the hype. That doesn’t make for splashy headlines, and takes a long time, but the reality of the NYC tech ecosystem coming of age is actually happening right now.”

Matt Turck, Managing Director of FirstMark Capital writes a long post on NYC’s tech startup ecosystem, analyzing its history, strengths, past exits, and compares it to the Bay Area tech ecosystem.

Read Matt’s post on New York’s startup ecosystem here.

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