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None of which is especially relevant to the rug pull business, except in the sense that investors have seen the rug pull work and they are seeing that wild ride
by cratermoon 3y ago
None of which is especially relevant to the rug pull business, except in the sense that investors have seen the rug pull work and they are seeing that wild ride of the SV VCs is coming to an end, either through regulation or collapse, so they are doing it sooner.
- alephnerd 3y agoThat "rug pull" you and other HN commentators talk about has happened after there is a need for cost cutting (eg. IBM wanting RoI after an expensive M&A deal, late stage Confluent investors wanting stronger returns, pissed off activist investors in MongoDB and Hashicorp annoyed that the share value has dropped despite core revenue fundamentals being consistent). A lot of these OSS-core companies are extremely late stage or already public, so they are at the stage where investors wish to get an RoI out of them. > seeing that wild ride of the SV VCs is coming to an end Most of these OSS-core companies switching to restrictive licensing are towards the later stage/age of a company - around 10-15 years old. Their late stage investors (if their a startup) and largest shareholders (if public) tend to be Growth Funds and Mutual Funds - both financial instruments that have different goals and return criterias compared to Venture Capital.
- cratermoon 3y ago> a need for cost cutting But then you go on to mention investor returns > the stage where investors wish to get an RoI out of them. Exactly describing the rug pull or, as Cory Doctorow deemed it, the final stage of enshittification. Clawing back all the value provided to customers to hand to the investors. See for example Google's two $70 billion buybacks at the same time they were joining the rest of Big Tech in Big Layoffs.