[austhrow743]

> If the companies are paying X amount, they have to be getting at least that much value back, or they wouldn't have that position.

Tech companies are in the business of creating new products. Hell its practically the name. All companies use technology, technology companies are ones that create new technology as a core aspect of what they do.

Predicting what new thing will be valued by the market and what won’t is a very hard and unsolved problem.

So just like the VCs that funded them, tech companies adopt a throw shit at the wall and see what sticks approach.

They can do that because the scale of users that can use your work is enormous. Getting it right in software can make up for a lot more of getting it wrong than in most industries.