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Highlighted quote: > Perhaps the original mistake of the DTCs wasn’t in their vision, but in their decision to take the venture capital in the first place. Now
by _bxg1 7y ago
Highlighted quote:
> Perhaps the original mistake of the DTCs wasn’t in their vision, but in their decision to take the venture capital in the first place. Now under pressure to grow even faster and at greater scale than they otherwise would have had to naturally, they are being confronted with what happens when growth slows down, the cash starts running out, and investors are expecting their returns.
The same story keeps playing out, doesn't matter what industry.
- paxys 7y agoThe other side of it is that none of these companies would have been remotely competitive in the first place had it not been for venture capital. All these industries (mattresses, taxis, fashion/eyeglasses) are monopolistic and anti-competitive in nature, and the current players have been entrenched for decades, some even longer. The only way to make inroads is by burning cash. The growth might not always be sustainable, the business model might not always make sense, and that's fine. VCs are looking for 1 in 10 of them to be successful.
- Apocryphon 7y agoVC giveth, and it taketh away. Don't the VCs deserve at least part of the culpability, if they had imposed terms that were unrealistic?