If a product is so disruptive, how can it possibly fail within two years?
Running out of money tends to have that effect.
The problem with VC is that the VCs (in consumer web) aren't really into technology per se. They're trying to take advantage of the short-term, emerging natural monopolies that technology creates. This means they force fast growth whether it makes sense for the company or not, and even if it's a sound business, it will have to ask for money in 18 months regardless-- because it's been forced to grow headcount and scope so dramatically.
It really is a rigged game. The more traditional approach to business (10 to 30 percent growth, getting rich slowly) isn't allowed.
Comments
If a product is so disruptive, how can it possibly fail within two years?
Running out of money tends to have that effect.
The problem with VC is that the VCs (in consumer web) aren't really into technology per se. They're trying to take advantage of the short-term, emerging natural monopolies that technology creates. This means they force fast growth whether it makes sense for the company or not, and even if it's a sound business, it will have to ask for money in 18 months regardless-- because it's been forced to grow headcount and scope so dramatically.
It really is a rigged game. The more traditional approach to business (10 to 30 percent growth, getting rich slowly) isn't allowed.