Comment by random3
9 days ago
A moat is around something that exists, meant to protect it. You're describing something else, not a moat with your example. OP used moat correctly, creative effort around existing earned skill, brand, etc.
To answer your question. Yes to a player already in a market with lack of funding, a billion dolars could be the necessary moat to win.
Money was, is and likely will be a moat for a while. But as a proxy, it may not be enough as a moat. Scarce resources may require more than money— e.g. IP classes or, if you're China, ASML machines.
I think the point is that capital alone is a pretty poor economic moat. If it works, it's probably only because the market opportunity actually isn't that great once you take everything into account. If the opportunity is good enough, the money is out there and your competitive advantage will disappear quickly.