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

— -- He was one of the first investors in Skype, Hotmail and Tesla. Forbes has him on its Midas List. And Harvard calls him one of its most influential graduates.

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.

Instead, Draper says he looks for entrepreneurs like Tesla’s Elon Musk, who are willing to dedicate everything to their ideas, even if the rest of the world thinks they’re nuts.

"Elon goes, 'We’re going to Mars.' And then 95 percent of the population goes, 'He’s crazy,’” said Draper. “And the other 5 percent of the people go, 'How would we get to Mars?’”

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.