>The thing with software is that it's very quick to prove (or disprove) a business model. If you're working on something for years and don't have the profits (o

>The thing with software is that it's very quick to prove (or disprove) a business model. If you're working on something for years and don't have the profits (or free users) to show, it's unlikely that you'll succeed. Uber is a pretty strong empirical case study in why this argument is wrong. The entire DotCom bubble, in fact, has been a similar case study. When you prop things up with VC funding it actually becomes very hard to disprove bad ideas because price signaling and market logic stops working. It becomes entirely driven by the animal spirits that govern pitch meetings for as long as the BS stream can be maintained. I mean, people are still pouring money into cryptocurrency! And it's quite likely that lots of good and potentially successful ideas are being starved of funding because of oxygen being taken up by sexier and flashier ones that will flame out quickly.