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I think the effect that you describe can happen. You seem to be suggesting that it's controversial, but I don't see it. If they want to make a loss and pay that
by jfoster 12y ago
I think the effect that you describe can happen. You seem to be suggesting that it's controversial, but I don't see it. If they want to make a loss and pay that much, good luck to them. They must be doing it with the expectation that it will somehow be worth it in the long-run, and it's their money (or the VC's money) that they're playing with.
- crdoconnor 12y agoThey're doing it with the expectation that deeper pockets can substitute for innovative / better products. Sometimes they're right.
- chii 12y agoif the product by the bootstrapped startup is indeed more innovative (read: better), then it won't (or at least, shouldn't) matter that the VC backed startup tries tactics like this. If both their products are generic/simple, then yes, draining your competitor's ad budget is akin to you having more budget to spend. Advertising is a zero sum game after all.
- girvo 12y agoBut that's not true either. The very point of VC funding is that it allows you to be able to do things and achieve better growth than any bootstrapped could dream of, so even if the bootstrapped companies product is far more innovative, they can easily be squashed. That sucks, although I don't see any way of fixing it. An excellent product isn't enough, as well all well know.
- crdoconnor 12y ago>if the product by the bootstrapped startup is indeed more innovative (read: better), then it won't (or at least, shouldn't) matter that the VC backed startup tries tactics like this. Life is unfair. You can either be in denial about that or learn to live with it.