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But you would hypothetically be accounting for that outcome in your strategy. If I'm understanding the commentary correctly, Amazon would regularly invest in co
by dcow 6y ago
But you would hypothetically be accounting for that outcome in your strategy. If I'm understanding the commentary correctly, Amazon would regularly invest in companies in order to gain access to their data and technology while another team used the info to undercut and kill their product. You don’t generally assume your investment partner is actively planning your demise by pretending to support you while siphoning off your life blood.
I agree though that it’s not as sinister as it initially seems. Companies create competition at times to stimulate product development even though it’s a shitty operating mode for the ground soldiers involved. In that case though they’re spending entirely of their own resources and not leeching off other investments to actively undermine a successful exit.
Perhaps startups are undervaluing their IP if this behavior is able to manifest easily. And in light of this news I’d be super hesitant as a board to allow any money from Amazon whatsoever.