[realtalk_sp]

When there's more capital available (and there's been an abundance of it in the last decade plus), the time it takes to make a new market/industry competitive enough to shred margins goes down a by lot. In recent history, this has happened before such companies can float shares in the public equities market. Great examples are ridesharing, online food delivery, and meal kits.

In an environment flush with capital chasing returns, any company without a true monopolistic moat will ultimately be forced to operate at or below cost, yielding no meaningful profit. Many of these tech unicorns thought they would be monopolistic but ended up looking more like airlines.