Market timing succeeds by tracking dollar shifts between technology architectures
Arif Jan Mohamed · 20VC: Lightspeed's Arif Janmohamed on Why Market Risk Is The Most Dangerous Risk To Underwrite As A VC, How To Determine When to Stretch vs Not on Price Today & The $TRN of Market Cap Up For Grabs Today In Enterprise · Oct 21, 2019 · at 16:24
Arif Janmohamed, Partner at Lightspeed Venture Partners, shares his evaluation framework for market timing using the enterprise shift from on-premise to cloud as an example.
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“And the way I think about it is market timing works in markets where there's dollars shifting from call it one technology stacker or legacy architecture to a new type of architecture. The most recent being cloud. If you can make an argument that cloud is up ending both from a business model perspective, from a consumption perspective, as well as a technology perspective is up ending on premise. Then you make the argument that dollars that were in on-premise are tipping towards cloud. That wasn't entirely clear when that market time was happening, but those companies that were very, very smart, not only about building a new type of product for this new world, but also spending a lot of time with customers to understand those customers' propensity to shift, were the winners.”
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