Problem is that with so much free money floating around, a large chunk of IT and especially startups was never about running a profitable business but about perpetuating a ponzi scheme running on investor money doubling as a daycare center for employees, since there was never any actual market pressure to operate profitably.

You don't see as much of this in other industries where most companies are busy making actual money (or they will get out-competed by companies who care about their bottom-line more than virtue-signalling).