If I were a VC investing in consumer internet technology, I would be looking for market dominance, a clean user experience, a unique angle that differentiates it from similar services, scalability, high profitability, relatively low costs, and broad appeal. Investing in Facebook in 2007 would have been easy, seeing that the site was already gaining a lot of traction and had high profit potential. Most social networks fizzle out pretty quickly. The hardest part is probably getting the opportunity to invest, not choosing the company.

I def. know a lot about this area, and myself predicted the rise of valuations of major web 2.0 companies like Facebook, Snapchat, and Uber.

But I don't think it's that hard of a skill picking the winners from the losers. But he problem is if everyone followed this strategy you would have a lot of unfunded companies.