this post was submitted on 10 Jun 2023
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Because capitalism. Everything is set up on the literally-impossible goal of continuous, unending growth. Lots of shitty decisions get made on the assumption that you can always be continuing upward, even when you literally can’t anymore. Have one quarter where things dip a bit and it could be the end of you as the investors jump ship over it.
I’m not sure that capitalism per se is the problem here and more so that the entire way modern, especially tech companies, are funded is just stupid.
Present a „new“ concept that nobody has done before. Rake in cash by showing investors your user numbers. Try to actually start making money by squeezing your users. Fail. Maybe because your concept wasn’t working economically from the beginning and that’s why nobody else has done it before.
That's literally (venture) capitalism. That is literally the most fundamental tenet of capitalism. That's where the "capital" in "capitalism" comes from.