4 ms·
I'm on the fence about antitrust action in general, but here's an assertion from the article that I think is completely untrue: "Venture capitalists are now he
by sempron64 8y ago
I'm on the fence about antitrust action in general, but here's an assertion from the article that I think is completely untrue:
"Venture capitalists are now hesitant to fund new startups to compete with these big tech companies because it’s so easy for the big companies to either snap up growing competitors or drive them out of business."
The possibility of being "snapped up" is very good money for venture capitalists instead of waiting a decade for an IPO. So regulating acquisitions by the big players may have a chilling effect on capital and, thereby, tech innovation.
In addition, the first mover effect is very powerful and should not be discounted. For example, the competition between Snapchat and Facebook was not as skewed as the outcome would have you believe. Snapchat had and has a large userbase, and is losing because of mistakes (including not agreeing to very good acquisition offers). I can't personally think of too many other examples of megatitans successfully squashing innovative smaller companies with an equivalent product.