It’s best to take a thematic approach to investing in tech.  Jon Steinberg writes about this on blog:   

Everyone obsesses about competition when product and execution are so much more important.  And it’s also execution in the right area/sector at a time when businesses or people need your product, and the economics of the market space allow for success.

The macro trends so often outstrip everything else.  Businesses worry so much about their competitors “beating” them when relatively few businesses fail because of competitors.  Most failures can be attributed to failed business models, poor execution, or a solution looking for a problem.  And, relatively few businesses exist in markets where network effects result in winner-take-all.

The importance of industry and market trends is why so many VCs and public market investors use a thematic investing approach.  Unless you can do a hedged trade, who wants to bet against even the losers in a market witnessing tremendous tailwinds.  As an entrepreneur, you don’t have the opportunity to go long a good company in a bad sector, while simultaneously shorting the sector index.

Read more: A rising tide lifts all boats, or enough to eat for everyone | Jon Steinberg http://jonsteinberg.com/2009/05/a-rising-tide-lifts-all-boats-or-enough-to-eat-for-everyone/#ixzz0sCjm5EN7

Thematic investing takes advantage of trends.  Trends provide oppotunities for businesses and investors.  Opportunities yield results.  It’s that simple.  You want to be at the forefront of trend when investing in tech.