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How are VC-funded startups different from "expand into new markets by a profitable business" ?
by liotier 5y ago
How are VC-funded startups different from "expand into new markets by a profitable business" ?
- Grimm1 5y agoBecause a startup isn't profitable often for years even while in growth before it hits the inflection point. Taking this ability away without being careful means you'll likely further entrench incumbents at the expense of those new companies.
- ahtihn 5y agoI think marginal unit costs should not be allowed to be higher than the sale price in general, with maybe some exception (liquidation of existing stock with no further production or explicit temporary promotions). For example a company like Uber should not be allowed to sell rides for less than what they pay the driver for the ride.
- disgruntledphd2 5y agoI agree with you in principle, but framing the law would be tricky.
- Leherenn 5y agoI think it is the case in some European countries like France.
- mountainb 5y agoIt's not. VC is often a cut out for institutional investors who are also major shareholders in BigTech or are literally BigTech itself. These kinds of laws are fundamentally political in nature, as there is no real 'neutral' ground.