Ken Fried, OpenDoor’s founder, brings 25 years of experience in the financial markets including 12 years at Goldman Sachs and 8 years of equity portfolio management at several of the industry’s top hedge funds. His foray into start-up investing began back in ’00 when he identified and invested in the ensuing boom in cloud-based enterprise software. OpenDoor was born in 2012 with a focus on identifying emerging trends with exciting high-growth potential. Our general focus is on early-stage seed or angel rounds with a propensity to participate in subsequent follow-on rounds. Some of OpenDoor’s recent investments center around Artificial Intelligence, eSports, blockchain, and next generation EV battery technology.
It all boils down to innovation. Focusing on creating “different” and not “better”. While one can certainly succeed by building a better mousetrap, we have no doubt the big money is made focusing on different. This concept is our defining framework at OpenDoor and our number one starting point in our investment process. We feel this is perfectly aligned with how people operate in today’s world:
Given the always-on mobile world we find ourselves living in, people are inherently more distracted with information. As a result, attention spans have fallen and the average number of distractions has risen. People have less patience to learn a “better” product; if what they have is working fine there is a huge uphill battle to gain incremental traction
People naturally strive to always improve their lives, its part of our nature. Being the first to solve an existing pain point for people will quickly win the hearts and minds of the masses
It’s also in people’s nature to gravitate toward innovation and then reward it with our loyalty. We all love to share something “new” with friends, it’s inherently exciting and internally motivating. Once a problem has been solved, being number two just doesn’t create the same underlying positive energy for people
The innovators attract capital far more easily. Money always flows toward innovation, its always worked this way and will continue to do so. Attracting sufficient amounts of start-up capital before a company turns cash-flow break-even is one of the biggest challenges for any start-up. The more capital a start-up has quick access to, the higher probability of early success