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Regulatory changes may be needed but some of this piece indicates a clear lack of understanding of the tech sector and basic finance. “Venture capitalists are

Regulatory changes may be needed but some of this piece indicates a clear lack of understanding of the tech sector and basic finance. “Venture capitalists are now hesitant to fund new startups to compete with these big tech companies because it’s so easy for the big companies to either snap up growing competitors” VCs have stopped funding startups because... they might exit? Of course there’s no mention of increasing interest rates leading to reduced equity funding as is perfectly logical. I also wonder how we can even think about Google Search under this platform utility model. By definition they are the only seller in the market. Is that wrong? They are simply selling access to inventory (impressions) like any traditional business. Regarding mergers. Who is going to write this new regulation over which mergers are acceptable and which are not? The same people who don’t understand the inverse relationship between rates and equity valuation that you learn in any finance 101 course?

jmull 7y ago
> VCs have stopped funding startups because... they might exit? I think her point is that big companies can essentially force startups to exit early under the threat of being driven out of business. You cut out part of the sentence that provides the context for that: "...it’s so easy for the big companies to either snap up growing competitors or drive them out of business..."
- formercoder 7y ago
  That’s fair i did remove that context. The latter half is a valid point.
- Hydraulix989 7y ago
  Yes, big companies will copy you and pour their endless resources into outpricing and outhustling you. They will then append new rules to their terms of service, banning your app from their digital stores, pulling your social media accounts on their platforms, etc. They will use their PR ammunition to rewrite history, casting you as a rule breaker.

jmull 7y ago

> VCs have stopped funding startups because... they might exit? I think her point is that big companies can essentially force startups to exit early under the threat of being driven out of business. You cut out part of the sentence that provides the context for that: "...it’s so easy for the big companies to either snap up growing competitors or drive them out of business..."

formercoder 7y ago
That’s fair i did remove that context. The latter half is a valid point.
Hydraulix989 7y ago
Yes, big companies will copy you and pour their endless resources into outpricing and outhustling you. They will then append new rules to their terms of service, banning your app from their digital stores, pulling your social media accounts on their platforms, etc. They will use their PR ammunition to rewrite history, casting you as a rule breaker.