4 ms·
I think this should be outlawed. So many industries destroyed by cheap vc money, and then trying to raise prices once everyone else is gone. You can lose money
by mstipetic 4y ago
I think this should be outlawed. So many industries destroyed by cheap vc money, and then trying to raise prices once everyone else is gone. You can lose money doing research all you want, but the moment you start interacting with the market there should be a time limit until you can get your unit economics to work, or get out.
- soheil 4y agoSo you're suggesting any startup that can't get its unit economics to work should have its founders sent to jail?
- mstipetic 4y agoNot too jail, where did I mention jail? Stop selling and messing up the market, just shut it down and go do something else that creates value
- mauvehaus 4y agoUnder certain circumstances, the IRS will consider your business a hobby if it fails to make a profit. The consequence being that you may no longer write off your business expenses on your taxes.
- kfarr 4y agoIt’s a few years IIRC, something like 3-5 years
- webmobdev 4y agoI agree - "free" should be anti-competitive. Today it is incredibly hard for any startup to compete with the "free" products of BigTech. And that is why in this industry, getting acquired by them is the only really viable exit option available for many startups.
- bdlowery 4y agoThis is why I’ll never use vscode.
- cortesoft 4y agoHow would this proposed law work? I am really curious how you would word a law to enforce this.
- mstipetic 4y agoI really have no idea. Since the market values uber or a buy now pay later widget (or at least used to) at 50+ billion I'm not sure I understand much how things work. Maybe we need a reluctant philosopher king like in Plato's Republic.
- woofcat 4y agoIsn't there already laws against established companies using their market position to price under cost to cut out competition?
- cortesoft 4y agoThere are laws against 'dumping', which is selling goods at a loss to drive out competitors, but those are fairly narrow in scope. It would be hard to enforce a more general restriction on not being profitable.