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It's interesting to me that you include the Tech industry. I am familiar with bailouts for the auto and financial industry. In what way is the Tech industry "
by irchans 5y ago
It's interesting to me that you include the Tech industry. I am familiar with bailouts for the auto and financial industry. In what way is the Tech industry "insulated from feedback"?
- femiagbabiaka 5y agoVenture capital is at its core a vehicle to shield businesses while they’re figuring out PMF — aka, figuring out how to turn ideas into money. At the scale that it operates at today it’s barely distinguishable from bailouts — I’m thinking of examples like Uber and WeWork.
- dustintrex 5y agoThe timescales are quite different though. A failing car factory can be propped up by government subsidies for decades; a Juicero will crash and burn in a year or two. Uber and WeWork are outliers in that they provide what's clearly a useful and novel service, but it's still unclear how profitable they can be.