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> It used to be that you needed a lot of capital to enter markets - you had to build a data center, hire people, build and sustain in the hope of a market. I'd
by owebmaster 9y ago
> It used to be that you needed a lot of capital to enter markets - you had to build a data center, hire people, build and sustain in the hope of a market.
I'd say that this is still the norm with some lucky exceptions in the Valley, but the Valley itself is a huge capital investment (public and private). If you look world-wide, nobody can compete with Facebook, Google or Apple, even with high investment in data centers, people, etc. Our economical system gives a lot of benefits to monopolies.
- rtpg 9y agoPerhaps more importantly nowadays with this gen of unicorns: Companies are willing to spend a looooot more on acquisition of users, beyond the actual value of the users. Mainly to try a monopolistic play. Uber is the typical example of "turn money into market share", though you can see a lot of SV companies nowadays spending a huge amount in this space.