4 ms·
> If you have a better platform but you actually need to turn a profit, your ship is sunk before you leave the harbor. Why wouldn't a VC fund this amazing plat
by srtjstjsj 6y ago
> If you have a better platform but you actually need to turn a profit, your ship is sunk before you leave the harbor.
Why wouldn't a VC fund this amazing platform?
> Uber and Lyft
Wait, why does Lyft exist if Uber's funding prevents any competitor from existing?
- rmrfstar 6y agoVC's won't fund anything in Big Tech's "kill zone", and bootstrapped projects need profits to sustain themselves. It is very difficult to turn a profit while facing a competitor that can run perpetual losses. I find the "kill zone" theory plausible and supported by available evidence [1,2,3]. Others (a large consulting firm) disagree [4]. [1] https://www.aei.org/economics/incumbents-vs-startups-the-case-that-big-tech-is-squashing-small-tech/ https://www.aei.org/economics/incumbents-vs-startups-the-cas... [2] https://www.dallasfed.org/-/media/Documents/research/events/2018/18ted-haltiwanger.pdf https://www.dallasfed.org/-/media/Documents/research/events/... [3] https://www.wsj.com/articles/facebooks-destroy-modemyth-or-reality-11596068322 https://www.wsj.com/articles/facebooks-destroy-modemyth-or-r... [4] https://www.aei.org/economics/a-new-analysis-takes-a-shot-at-the-idea-big-tech-has-created-a-kill-zone-for-startups/ https://www.aei.org/economics/a-new-analysis-takes-a-shot-at...