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But that's the whole point of the SV business model! Strangle any competition by initially offering your products for free (and funded by huge amounts of VC), a
by ppf 6y ago
But that's the whole point of the SV business model! Strangle any competition by initially offering your products for free (and funded by huge amounts of VC), and then raise prices at your leisure once you're the last one standing.
- TeMPOraL 6y agoI suppose this is tolerated because there's usually more than one party trying it at the same time, so there's technically a competition going on - but it doesn't take into account the collateral damage done to the entire market. VC subsidies run out, eventually, and if the upstarts haven't found a path to profitability by that time, society is left with a damaged market segment.