this post was submitted on 12 Oct 2024
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I was listening to an interview where VC funding came up and the business strategies of venture capitalist funded businesses were discussed. The idea was that a good VC business is able to grow to the point of being so ubiquitous that its usage within a given market is almost a given, passing up smaller scale monetization strategies along the way. So if Google was invented today, it would in all likelihood start charging $15/month for search features and fail to grow beyond moderate success, which would make it a failure in the eyes of venture capitalists. It would ultimately be killed and never be able to reach its current actual status as a global monopoly.
I think this mentality explains a lot of tech layoffs in otherwise successful companies as well as why naive enshitification is usually an overzealous pivot into disaster for VC funded companies. As far as I understood from this interview, VC companies fund so many businesses that their successes have to subsidize their failures, so mere success is never enough.