>And for that you need money, tons of it, which you have to spend like water to undercut incumbent firms that you plan to disrupt and eliminate. In that quest,

>And for that you need money, tons of it, which you have to spend like water to undercut incumbent firms that you plan to disrupt and eliminate. In that quest, you need to be both ruthless and profligate, because those incumbents are normal firms that have to make profits – a tiresome obligation that does not trouble you. So the deal you offer to investors is this: you give us shedloads of money and stick with us until we get to be the winner that takes all. And then you can cash out. Reading between the lines: after the cash-out, the company is now vulnerable to exactly the same tactics. However, not mentioned is that the "predatory" pricing is a combination of (a) burning VC money to operate at a loss and (b) operating more efficiently than the competition. The market seems to be wisening up to startups that are only gaining market share due to (a)[1]. Valuations and the payday from the cash-outs should reflect this. Rather than a rupturing bubble, I expect a contraction, especially as rates rise and VC cash flows less freely. Some startups will end up being worthless, but a bunch will just end up being worth less. As long as a startup has some benefit from (b), its raison d'etre remains. And the ones with the strongest cases-- tech companies that bring efficiency gains to the market-- will be absolutely fine. [1]https://www.moviepass.com/ https://www.moviepass.com/