Re:Evernote Blows Up the ‘Fail Fast’ Gospel
by danjac on Friday June 28, 2019 @01:54PM
(#20307018)
What if your business model were to get a huge investment from some rich friends, give away free tacos, put all the other taco stands in your town out of business, become a taco stand monopoly, and then charge for tacos at any price you want?
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Re:Evernote Blows Up the ‘Fail Fast’ Gospel
by jacques_chester on Friday June 28, 2019 @09:41PM
(#20310275)
If you put other taco stands out of business, their assets are cheap to buy. Tada! You are now competing with someone whose cost base is lower than yours.
Value creation doesn't come from the absence of other value creators.
Re:Evernote Blows Up the ‘Fail Fast’ Gospel
by codesushi42 on Friday June 28, 2019 @03:03PM
(#20307771)
I see what you're getting at, and that's the logic some VCs seem to be using. But rarely does it ever work, because you'll need to start charging sooner than later, even at a loss. And once you do, competition will show up.
See Uber vs Lyft.
You'd be better off investing in a real business with a real revenue plan. Still, yes, your model works in an environment where collusion can take place. Which is why collusion and the VC aristocracy is so damaging.