Re:Entrepreneurs who regret starting businesses
by vlovich123 on Tuesday April 04, 2023 @10:20AM
(#35440087)
Except a huge amount of VC plays are basically just gambling on someone succeeding. They don’t care who. So you’ve got 1 success story for every 100 attempts. Sure that 1 generated outsized returns, but that doesn’t help the 100 that failed and lost time and money they could have gotten elsewhere.
Additionally, VC plays are often are parasitic endeavors that try to acquire monopoly positions by flooding the market to corner it (ie kill all competition) before raising prices (eg Uber prices raise to pretty close to taxis once the local taxis have been run out of business). If you prevented flooding the market as a tactic, the entrepreneurship model would change drastically. And that is something we used to try to prevent but for some reason we only did it once for the commodities market but let it continue unabashed everywhere else.
Additionally, VC plays are often are parasitic endeavors that try to acquire monopoly positions by flooding the market to corner it (ie kill all competition) before raising prices (eg Uber prices raise to pretty close to taxis once the local taxis have been run out of business). If you prevented flooding the market as a tactic, the entrepreneurship model would change drastically. And that is something we used to try to prevent but for some reason we only did it once for the commodities market but let it continue unabashed everywhere else.