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Any organization that's not profitable won't be saving people money for long. Generally there are two scenarios: 1. The company is not profitable, and VC mone
by tabeth 10y ago
Any organization that's not profitable won't be saving people money for long.
Generally there are two scenarios:
1. The company is not profitable, and VC money is subsidizing the cost. Eventually they'll either close down, in which case you will no longer save money (arguably it's harmed you indirectly. The money could've been used for a more sustainable venture that would [definitely] save you money), or they'll raise prices.
2. The company is already profitable, and whatever product or service you're purchasing that's apparently saving you money in actuality has a cost, that may not affect [you] per say, but the company definitely is making money off someone.
- rgbrgb 10y ago3. The organization has significantly lowered the cost of service via technology and is able to pass this savings on to the consumer. This one is pretty common in "file cabinet" industries Garry Tan often references [0]. [0]: http://venturebeat.com/2016/10/24/initialized-capital-raises-115-million-for-its-third-fund/ http://venturebeat.com/2016/10/24/initialized-capital-raises...