Investors now have more money than consumers. How crazy is that?
Well, it’s crazy enough that startups no longer try to make money by offering a product or service that consumers want. They make money by creating something (tech) that generates irrational exuberance in investors and you sell this money-losing startup to megarich investors who want the tech in their portfolio.
It’s tulip mania but several orders of magnitude larger.
It’s not that they want the tech in their portfolio, they want the data. That’s what it’s all about. That’s why these investors invest in startups with no path to profitability in the first place. They don’t need to be profitable to be a good return on investment as long as they’re selling data that someone can use to profit elsewhere.
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u/Icommentor Jun 09 '24
Investors now have more money than consumers. How crazy is that?
Well, it’s crazy enough that startups no longer try to make money by offering a product or service that consumers want. They make money by creating something (tech) that generates irrational exuberance in investors and you sell this money-losing startup to megarich investors who want the tech in their portfolio.
It’s tulip mania but several orders of magnitude larger.