Re:Facebook establishing a venture arm to invest in startups
by TeMPOraL on Sunday June 14, 2020 @05:29AM
(#23516258)
I think GP's point is that these competitors can make the extra capital work even better because they're exit seekers - so their business is just a ticking time bomb that needs to be sold off before it collapses. You can squeeze that growth curve quite a bit if sustainability doesn't matter to you. Meanwhile GP is presumably trying to build an actual business - providing value to users in exchange for money.
This is an economy of scale. It's caused by your competitors' capitalization, and it may be unsustainable since it's with respect to customer-acquisition versus production.
If your competitors' unit economics work, they're strategically leveraging scale using capital. Not the other way. (If they don't, go into cockroach mode or sell to them.)