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> I think capitalism can handle it just fine. I think there's a lot of truth to that view. But the way SV VCs and the current capitalist environment operate ar
by HillaryBriss 8y ago
> I think capitalism can handle it just fine.
I think there's a lot of truth to that view. But the way SV VCs and the current capitalist environment operate are a bit strange. I think that's what the article tries to shine a light on.
SV VC capitalism is extremely motivated to find new, nifty companies that will dominate and own new, nifty "tech" niches -- even if they're never profitable.
People care about this because the tech industry provides so much of the economy's growth. The underlying question is: why is so much cash lavished on businesses that, in general, are not profitable? What opportunities are being missed in the larger economy?
What is it about our overall system that means that companies that attack America's really vital problems (health care cost control/transparency, health care mistakes, health care inefficiency, public health problems, elementary education inefficiency, relatively high murder rates, high death rates from car accidents, infrastructure repair backlogs in big cities, the shortage of seats at the elitist colleges, opioid addiction and death) do not get this high level of funding?