In order to create a successful new company, you have to find an idea that has escaped the attention of the major Internet companies. But how many ideas like that are left?
Internet is not a young growth forest anymore. There are giant redwoods. They have large canopies. Not much grows in the canopy. Fortunately the forest is expanding, overrunning traditional industries. Entrepreneurs can still build big businesses on the outskirts.
David Sacks, co-founder of PayPal and founder of both Geni & Yammer encourages entrepreneurs to stay away from the big tech firms (such as Google, Facebook, Microsoft, Apple) because they are hard to compete with. Entrepreneurs need “think bigger” and take on industries that are not immediately sexy but solve bigger problems. They need to focus on reinventing education, healthcare, energy and even less noble industries such as television, telephony and financial services.
Source: Mark Suster blog