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Why is it that some small high growth companies in non-tech industries get tech-type valuations and prestige, while others do not? It feels like companies like
by tuna-piano 8y ago
Why is it that some small high growth companies in non-tech industries get tech-type valuations and prestige, while others do not?
It feels like companies like Warby Parker can use a certain style for people to think they’re super innovative- when in reality they’re just normal boring delivery/sunglasses/sheets/etc with none of the characteristics of real tech companies.
- ghaff 8y ago>with none of the characteristics of real tech companies You mean they sell an actual product? OK. That's glib. But it's often not clear what many "real tech companies" are actually selling that has consumer value at the end of the day. At least sunglasses and sheets are something that people value and use.
- goatherders 8y agoI dont its glib at all. And I agree with you. The notion of a "startup" is all marketing and message anyway.
- tuna-piano 8y agoI'm mainly thinking many companies in the tech industry can earn huge profits due to (1) It's easier for software companies to achieve huge global scale than physical companies and (2) Potentially amazing economics. Marketplaces, network effects and high fixed low variable costs = Winner take most. The sunglass/sheet/etc market is not winner take most.