4 ms·
I think for-profit is fine; I think the need to profitably apply eight figures of capital is the problem. It's fine to seek profit; it's seeking triple digit m
by sneak 3y ago
I think for-profit is fine; I think the need to profitably apply eight figures of capital is the problem.
It's fine to seek profit; it's seeking triple digit millions of revenue that drives the problem.
Is it possible this is simply a knock-on effect of too-low interest rates for so long? Too cheap VC money?
- rightbyte 3y agoMaybe it is a sunk cost fallacy? I.e. not aiming for some stupid amount of growth is the same thing as telling the VCs you have failed and wasted their money. So going for some unhealthy revenue target is the path of least resistance, since the failure still is in the future.
- yarg 3y agoFor profit might be fine - but for profit masquerading as free simply doesn't seem to work.
- gmerc 3y agoOh it worked alright. FB could have a 6% gross margin and operate forever - but people wouldn’t bet phenomenally rich. Let’s not pretend they even had to pay anyone off at their profitability. It only doesn’t work for outsized expectations after a decade of interest binge party.