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Why do so many tech companies, like Reddit and Twitter are making their platforms worse for their users all of a sudden? (lemmy.world)

submitted 1 year ago by [email protected] to c/[email protected]

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[–] [email protected] 1 points 1 year ago

There is a significant change in investment climate since the beginning of the year.

Before you could basically get another round of investments very easily even without being profitable as central banks were lending money for free more or less. This meant that the current VC investors could usually find a bigger fool to offload their investment to.

However now the few remaining new investors actually want to make a return of investment from the company itself and not just artificially pump it up further to find another buyer for their exit. So the current investors are putting a lot of pressure on these companies to appear profitable no matter what so that they can exit their investment.