4 ms·

Why doesn't anyone discuss the giant Elephant in the room - the need to have a product/service people actually want to buy? No doubt SPACs and other financial

Why doesn't anyone discuss the giant Elephant in the room - the need to have a product/service people actually want to buy? No doubt SPACs and other financial tricks don't help matters, but if people are really wanting to buy your widget then surely that's going to go long way to stopping you from going broke? I mean, am I insane? Is that not the fundamental root problem here?

oldgradstudent 4y ago
> Why doesn't anyone discuss the giant Elephant in the room - the need to have a product/service people actually want to buy? At a price they are willing to pay. There are plenty of companies using all their VC money on subsidizing products few are willing to pay the full price for.
- mysterydip 4y ago
  What's the end game, then? If something isn't sustainable to sell at a price people are willing to pay, is the goal to create a monopoly so people have to pay a higher price? Or to somehow bring cost down over time? Something else?
  - hgsgm 4y ago
    The goal is to sell the stock to fad-chasing retail buyers who don't do due diligence.
    - oldgradstudent 4y ago
      Selling to retail is a long con. Once you manage to get VC money, there are endless way to loot it. The stupider the VC, the easier it is. You can pay yourself, you can sell stock on the secondary market, you can do non-arm's-length deals, and so on. Adam Neumann became a billionaire without selling to retail investors.
      - BeFlatXIII 4y ago
        When you go broke, loot the office on the last day. Free home office furniture upgrades for everyone!
  - cujaneway 4y ago
    Probably the same as any unicorn, hit their IPO and make a lot of money for the initial investors. You don't need to aim for long-term growth, just make money for whomever provided your seed funding and they'll happily invest in your next ~ useful ~ product too, repeat ad nauseam.
  - satvikpendem 4y ago
    Once again the show Silicon Valley satirizes this extremely well: https://youtu.be/YZFTaEenaHM https://youtu.be/YZFTaEenaHM The product of a VC backed company is not whatever it sells; the product is its stock, to be sold in the IPO to make the VCs and founders shit tons of cash.

oldgradstudent 4y ago

> Why doesn't anyone discuss the giant Elephant in the room - the need to have a product/service people actually want to buy? At a price they are willing to pay. There are plenty of companies using all their VC money on subsidizing products few are willing to pay the full price for.

mysterydip 4y ago
What's the end game, then? If something isn't sustainable to sell at a price people are willing to pay, is the goal to create a monopoly so people have to pay a higher price? Or to somehow bring cost down over time? Something else?
- hgsgm 4y ago
  The goal is to sell the stock to fad-chasing retail buyers who don't do due diligence.
  - oldgradstudent 4y ago
    Selling to retail is a long con. Once you manage to get VC money, there are endless way to loot it. The stupider the VC, the easier it is. You can pay yourself, you can sell stock on the secondary market, you can do non-arm's-length deals, and so on. Adam Neumann became a billionaire without selling to retail investors.
    - BeFlatXIII 4y ago
      When you go broke, loot the office on the last day. Free home office furniture upgrades for everyone!
- cujaneway 4y ago
  Probably the same as any unicorn, hit their IPO and make a lot of money for the initial investors. You don't need to aim for long-term growth, just make money for whomever provided your seed funding and they'll happily invest in your next ~ useful ~ product too, repeat ad nauseam.
- satvikpendem 4y ago
  Once again the show Silicon Valley satirizes this extremely well: https://youtu.be/YZFTaEenaHM https://youtu.be/YZFTaEenaHM The product of a VC backed company is not whatever it sells; the product is its stock, to be sold in the IPO to make the VCs and founders shit tons of cash.