The VC model only works because there's been easy money for so long. Slow, steady growth leads to longer-lasting businesses; most Silicon Valley successes are solely attributed to getting bailed out at the right time by an injection of capital, either by dumping on the public or positioning themselves as close to the money printer as possible.
Laeserin 🇻🇦
The whole idea that it's a good thing for someone to get millions of dollars just dropped on their heads, when they have barely even started, is California Capitalism.
I think it leads to feverish boom/bust cycles, rather than more steady, organic growth.
And there's no evidence that the end result is better. Maybe being built a bit slower, by people with a small budget might actually have a positive effect on the product development. 🤔
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Agree except that calling it California Capitalism I think is inaccurate. Capitalism is actually based on free markets, we have. Nothing of the sort, not even slightly.
What you describe is a consequence of the fiat debt system, which is based on the communist tenant of central banking and money as a tool of political authority. Thats what causes this. Money is literally issued out of thin air as debt. The results are what you describe.
