Comment by kdbbfjx

The startup model works where there is capital specifically large upfront capital available.

Large upfront capital automatically means you chase profit or growth.

Just like McDonalds. Which is really what the SV model is if you scrape away all the whizbang tech bullshit.

There is a reason McDonald inspite of "scale" and "low price" cant feed the world.

Because of the cost of opening a new store and initial capital involved. US had that capital available (thanks to dollar hegemony) esp post Ww2. No one else did.

There is no German/Chinese/Indian version of McDonalds.

Why? Because people are used to running sustainable restraunts without high upfront investment cause there was no capital for it.

McDonalds runs profitably and grows usually at the cost of something else (easy to see what those costs are in mature markets where growth has stalled) just like Google provides free shit at cost of all kinds other things.

But watch carefully what happens to these high capital models if they cant produce profits or growth.

Many have been coasting over the last 2 decades and have captured entire market. But that period is over just like the period where the British Empire expands till it cant any further. A high capital process btw cause you have to pay your army upfront to go shoot the native feudal lord and take his shit. Once expansion is over and all the land is captured how long did it take for British East India company to unravel?