How to Invest Like the Guy Who Found Tesla, Skype and Hotmail First

Tim Draper shares his tips on "Real Biz with Rebecca Jarvis."

So where does legendary venture capitalist Tim Draper see the biggest opportunities for investors now?

ABC News Chief Business, Technology and Economics Correspondent Rebecca Jarvis spoke to DFJ founding partner and the creator of Draper University on "Real Biz with Rebecca Jarvis" to get his advice.

1. How do you spot an entrepreneur worth investing in?

"I usually ask them, 'Why are you doing this?' because if their reaction is, 'Oh, I don’t know, somebody told me it was a good idea, dadadadadada' They’re out,” said Draper.

2. Where are you looking for your next big idea?

"I look back at all the companies that have been very successful for me,” said Draper, "[and] all took on industries where customers were getting really bad service at really bad prices."

Draper believes the industries today with high costs and bad service are: medicine, cable, finance, even his own business, venture capital. Plus, he said, "The one that’s the real big opportunity that I’m looking at now is government. That’s where we get the worst service for the highest cost."

3. Are we in a technology bubble?

No, according to Draper.

“As long as you guys are still asking me if there’s a bubble, there’s no bubble,” he said.

Draper believes technology still has “a long way to go” before the bubble bursts.

How much longer? To hear Draper’s answer to that very question, click on the link in the interview above.