“One of the strategic tasks of an innovator is to deter imitation for as long as possible. This applies not just to companies in established markets, but to startups that are creating new markets. Startups too must try to deter imitation,” writes Jerry Neumann, who happens to be one of my favorite thinkers. He is back with a new essay around moats, innovation, and competition. I would urge you to drop everything and read this piece.
The pioneers of the 1960s and 1970s had figured out a winning formula: build a great network to source opportunities, spend months getting to know the management team and doing due diligence, invest at the earliest possible stage, work hard to help founders get the right team in place and put together partnerships, and take the company public only when it was ready to be a public company.