Re:Lambda School is the biggest mistake I made this year
by TeMPOraL on Monday December 14, 2020 @09:08AM
(#25417650)
I worry that those startups #1-3 burn a good chunk of their money on customer acquisition, not on solving technological problems (though scale creates its own problems too). That money would be unnecessarily wasted. I also doubt a huge staff is needed to figure out the tech part.
But I understand your point: startups can be viewed as economy's distributed R&D. Speculative investment makes a lot of sense - it could be that without startups #1-3, #4 wouldn't exist because it couldn't afford the risk of developing an innovative product. But my main gripe is how VC-backed startups repay the investment - they're being pressured into user-hostile and sometimes antisocial business models. It's so common that these business model became accepted as standard these days! So perhaps a way forward isn't to reduce venture funding, but curtail the socially destructive business models directly.
But I understand your point: startups can be viewed as economy's distributed R&D. Speculative investment makes a lot of sense - it could be that without startups #1-3, #4 wouldn't exist because it couldn't afford the risk of developing an innovative product. But my main gripe is how VC-backed startups repay the investment - they're being pressured into user-hostile and sometimes antisocial business models. It's so common that these business model became accepted as standard these days! So perhaps a way forward isn't to reduce venture funding, but curtail the socially destructive business models directly.