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Nobody is saying reduce moonshot ideas to zero. There's a difference between "throwing everything at the wall to see what sticks" to having a risk/reward way of
by bumby 4y ago
Nobody is saying reduce moonshot ideas to zero. There's a difference between "throwing everything at the wall to see what sticks" to having a risk/reward way of prioritizing what to fund. What you're alluding to is the "grow at all costs and find a way to be profitable later" strategy that is prevalent in SV, but tends to not work so well in real economic downturns. Sometimes I think people either forget, or are too young, to remember that the pre-2021 decade+ of near-zero interest rates are a historical anomaly.
Put differently, take a look at the R&D costs of google[1]. Note how, despite a constantly increasing amount of investment, they still derive 80% of their revenue from ads. Granted, some of the R&D will contribute to ads revenue, but it may also be indicative of a moonshot strategy that isn't contributing much in terms of "real growth" in alternative revenue streams.
[1] https://www.statista.com/statistics/507858/alphabet-google-rd-costs/ https://www.statista.com/statistics/507858/alphabet-google-r...