I now use a quick test whenever I hear about a new startup: I ask myself what's the "trick" they are proposing. If the trick is sufficiently clever, then I rais

I now use a quick test whenever I hear about a new startup: I ask myself what's the "trick" they are proposing. If the trick is sufficiently clever, then I raise the odds of the startup getting initial traction. Here are a few examples: 1) rent out cars that people leave at airport parking (i.e. flightcar, etc.) 2) group people together for a buying discount (i.e. groupon, etc.) 3) a middleman service that uses middlemen (i.e. magic, etc.) Most of the hot new startups aren't delivering on a basic need (like food or shelter), but seem to be like one-off computer hacks. And that's not a bad thing. These are smart people bringing out clever solutions that deserve talented valley employees. The returns that these startups will generate are much more attractive for short-term investors and will have clear advantages over the long-term mentality needed for building a hard new technology.