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> Get VC funding, run at a loss and burn through money but gain a monopoly market share, and once you've done that you can raise your prices Slightly off topic
by selcuka 3y ago
> Get VC funding, run at a loss and burn through money but gain a monopoly market share, and once you've done that you can raise your prices
Slightly off topic, but the business plan of most startups seems to be "get VC funding, and exit". What you wrote may be the business plan of VCs.
I don't understand the valuation of many startups these days (even in the hypothetical case where they capture 100% of their potential market one day).
- gmerc 3y agoVCs don’t invest because your business has a bright future as a valuable, sustainable operation . Not anymore. The crypto dynamics have shifted the expectations so far to cheap, quick moment they most VCs, especially the a16z kind are more about “Can I juice this business and it’s metrics enough to sell it to someone to hold the bag”. Ironically I think the large numbers involved are basically part of that PR game - they act as proof that the business is worth it and attract attention and bagholder interest. The crypto economy worked like that too - the NFT wash trading, the signal metrics used to sell the idea that there is value where there is none. Probably something something wework too.
- uncletammy 3y ago> The crypto dynamics have shifted the expectations so far to cheap, quick moment they most VCs, especially the a16z kind are more about “Can I juice this business and it’s metrics enough to sell it to someone to hold the bag”. This strategy existed long before "crypto"
- gmerc 3y agoAnd crypto is just tulips 2.0.