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warning: cynicism incoming, but... isn't this just the VC playbook: 1. enter market 2. undercut incumbents by burning VC cash 3. wait until the incumbents f
by RansomStark 3y ago
warning: cynicism incoming, but...
isn't this just the VC playbook:
1. enter market
2. undercut incumbents by burning VC cash
3. wait until the incumbents fail
a. if you're getting close to burning all the available cash, sell to an incumbent and try a different market.
5. you are now a de facto monopoly
a. if you fail to reach monopoly status plan an exit (SPAC) before it all comes crashing down
6. increase prices
a. if your product is free, harvest more of your customers data
7. keep increasing prices
a. harvest all the data you can get away with
8. cash out (IPO)
- catchnear4321 3y agohang on, you said there was going to be cynicism…
- LastWeekendWas 3y agoExcept harvesting your customers [personal] data isn't just scummy, it is no longer a legitimate business model in Europe. There is no excuse for VCs not getting up to speed on the GDPR.
- tticvs 3y agoAmerican VCs don't care much about EU regulations despite what the Europeans wants you to believe.
- LastWeekendWas 3y agoThey can say goodbye to the European market then. (And the privacy conscious segment of the US market.)
- tticvs 3y agoNot a very good threat since the EU market is just a distraction for all but the largest American companies, and only becoming more so every year. Privacy conscious segment of the US market is a rounding error, despite what HN would have you believe.
- LastWeekendWas 3y agoAnd in keeping out the parasites, nothing of value was lost :-)
- tticvs 3y agoRemains to be seen
- rchaud 3y agoPreviously they didn't have the money or risk appetite to actually follow through on that plan. ZIRP gave them that last push. The sums that have been sunk into the WeWorks and Ubers of the world are staggering, on par with what giant infrastructure projects (with all the pork) cost.