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by realce 546 days ago
"Value creation" is not the same as the monopolistic paradigm of a winner-take-all 100m race. Hyperscaling is a system where potentially profitable businesses are destroyed because they weren't profitable ENOUGH for some singular VC investor class.

I agree with you that profitable businesses add value to everyone's lives, but there's a maximalist limit to the relationship where they start extracting value and opportunity overall.

1 comments

Similarly, almost all of the track and field athletes always cross the finish line, regardless of placement. If your business is genuinely profitable, you should do the same. You don't have to be gold medalist if it means compromising your vision or values. If you object to the whims of investors, it may be better to focus on things you can build without their assistance. It isn't as glamorous and it may not make you a billionaire, but it does hone your ability.

Frankly, not all of the VC sphere is focused on value creation. Much of it seems focused on buzzwords and vaporware. Success in the VC world might mean keeping the hype and promises of hyperscale performance rolling long enough to successfully dump on retail. Sure, VCs and founders profit, but is it genuine value creation?

It is a symptom of an overly financialized economy. We should distinguish these cynical scenarios from genuinely profitable value creation.

> It is a symptom of an overly financialized economy. We should distinguish these cynical scenarios from genuinely profitable value creation.

1000% agree, thanks for the thoughtful reply