Comment by api
3 days ago
All VC funded companies that release free or underpriced products and services, capture market share, then raise prices or enshittify?
The entire business model of VC funded tech?
3 days ago
All VC funded companies that release free or underpriced products and services, capture market share, then raise prices or enshittify?
The entire business model of VC funded tech?
Typically, VC funded firms are inventing new markets entirely.
Simply overcoming startup capital costs is not the argument being made when folks claim dumping.
They are? Most of what VC funded companies do has been done before at a smaller scale, often with less polish and at a higher price.
VC money is used to scale up, cut costs with scale, capture markets, and then usually prices go up later depending on the economics.
The Chinese state is basically just acting as a big VC fund for Chinese manufacturing industries. A VC fund with a sovereign currency and the ability to sustain burn-mode for decades.
It doesn’t always work. There are some absurd examples of Chinese waste produced this way like “ghost cities.” But when it works it works, and at tremendous scale, and they can just dominate entire industries.
It's questionable whether the ghost cities truly exist though. I was under the impression they were a product of China's bizarre savings and investment market, and that a lot of them have since filled up?
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