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VC'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 f
by rmrfstar 6y ago
VC'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...