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by bsg75 1253 days ago
It comes from a concern that VC backed investments demand a constant level of revenue growth, causing a company to add features or integrations that do not improve the base product. Organic growth is usually insufficient for stockholders, whose demands become a priority over stakeholders.

If the user base does not increase at some rate determined by the investor, then growth comes in the form of advertising, partnerships, or similar that negatively affect the _product_ existing customers signed up for.

2 comments

This does not stem from VC but from the ā€œCā€ itself - capital. In order to function in capitalism, production must facilitate the creation of surplus value that can then be appropriated. Over time, with the tendency of the rate of profit to fall and with inflation of prices, you will see a race to the bottom.
More importantly, when organic growth falters, corners are cut to create synthetic growth.

When investors get involved in software, you end up with winners and users.