Tech companies actually need much less capital to scale than other industries. Which is why VC focuses on software, and why tech founders are so much richer th

Tech companies actually need much less capital to scale than other industries. Which is why VC focuses on software, and why tech founders are so much richer than founders in other industries. The problem is that once the VC industry reached its peak, the capital itself became a competitive weapon. If startup 1 only really needs $10 million in capital to reach profitability, the VCs can't make that much money off of it. So they will fund startup 2 with $100 million over several rounds, and almost certainly knock startup 1 out of the market just by scaling faster. That means startup 1 essentially has to raise and burn massive amounts to grow as rapidly as possible, even if they would prefer to go with the $10 million to profitability plan that would be considered the only sane route in any other industry. And it leads to the almost unbelievable to anyone in finance outside of VC situation of investors being pissed that a company isn't burning cash fast enough.