Smart Money: How Investors Spot Big Problems and Back Big Ideas

Investors often look for problems that need solving.

Theo Ludwick and his team at NosTerra Venture Capital saw a big one.

• Artificial intelligence was using up a lot of electricity.
• No single energy source could keep up with the demand.

This was a puzzle. But it was also a chance to invest in something big.

More Than Just New Tech

Most investors get excited about:

• New tech
• Cool startups

But Ludwick and his partners saw something else:

• A problem that needed solving
• A chance to make a difference
• A chance to make money

A Balanced Approach

NosTerra didn't just pick winners. They split their focus:

• Half of their investments went into making computers more efficient.
• The other half went into making more energy.

This way, they covered all their bases. They didn't just bet on one solution. They bet on many.

A Common Strategy

Other investors do this too. For example:

• Andreessen Horowitz invests in both:
• Drug discovery
• Healthcare delivery

They don't pick one. They pick both. They bet on many paths to success.

Lessons for Everyone

But how can this help people who aren't investors?

1. Look for problems, not trends.

   • Look for places where customers are frustrated.
   • Look for places where solutions don't exist.
   • These are the places where opportunities hide.

2. Think about the future.

   • What will the world look like in five years?
   • In ten years?
   • Place bets that give you options.
   • Don't just predict the future. Prepare for it.

3. Keep learning.

   • Talk to experts.
   • Talk to companies.
   • Keep your eyes and ears open.
   • The more you know, the better your chances of spotting the next big thing.

The Bigger Picture

Investing is about more than just making money. It's about:

• Solving problems
• Making the world a better place
• Learning what comes next