Howard Lindzon on Investing Passions and the Rebirth of the Financial Web
Howard Lindzon, a well-known investor and entrepreneur, shares insights from his extensive experience in the financial world. In an interview, Lindzon reflects on his investments and how the landscape of the financial web has transformed over the years.
Early Impressions: Jim Cramer and the Power of Passion
Howard Lindzon recalls his early days in the financial world, when he was inspired by Jim Cramer, the well-known host of Mad Money.
ldquo;Great question Eli - I was blown away by Jim Cramer in 1998 as I was starting my hedge fund. He was so passionate about open and the web. He beat so many people with huge budgets and connections to the punch. A superstar.rdquo;
Lindzon acknowledges the impact of Cramer's enthusiasm and innovative approach, which set the tone for his own investments in the financial web.
Lessons Learned from Angel Investments
Reflecting on his numerous angel investments over the past decade, Lindzon has distilled several key insights:
Invest in Areas You Are Passionate About
Investing in fields you are passionate about is crucial, according to Lindzon. When deals don't work out, or you are uncertain about them, it can be disheartening. However, staying true to your passions can lead to significant returns.
ldquo;n1. Invest in passionate areas. When deals donrsquo;t work and you had no idea, it makes you feel extra dumb.rdquo;
Money Is a Commodity, but Speed Is Not
For Lindzon, money is a commodity easily obtainable, but speed in the financial web is not. Understanding the market and incumbent players well can give you an edge. Navigating the landscape quickly and effectively is what sets successful ventures apart.
ldquo;n2. Money is a commodity and speed is not. You can have speed when you know your market and incumbents well.rdquo;
The Evolution of the Financial Web
One of Lindzon's key observations is the shift in the financial web from traditional aggregation and ticker-based models to real-time, voice-based platforms. This transition represents a new phase in the rebirth of the financial web.
ldquo;3. My edge is I have watched the financial web start and get lazy. Old school aggregation. The tickers were replaced by voices and with real-time the ticker and new voices and reptation matter. Itrsquo;s day one on top of old legacy thinking about traffic, eyeballs, so the whole financial vertical is about to be reinvented.rdquo;
Lindzon believes that the financial web is on the verge of a major reinvention due to the changing dynamics of how information is consumed and shared in real-time.
Where to Fish: The Social Space
As the financial web evolves, Lindzon identifies the social space as fertile ground for potential for financial web verticals. He argues that the new voices and real-time updates in the social space bring a fresh perspective and genuine interaction, making it an attractive area for investment.
ldquo;I want to fish where the fish are and anyone in the social space could win the financial web vertical.rdquo;
By focusing on the social space, Lindzon sees opportunities for ventures to capture the attention of a new demographic and offer engaging, real-time financial insights.
Conclusions
Howard Lindzon's insights underscore the importance of passion, adaptability, and rapid response in the ever-evolving financial web. As the financial vertical undergoes reinvention, smart investments in the social space and real-time technologies can provide a competitive edge.