Unicorn Startups Aren't All Sunshine and Rainbows

in business •  last month 

Hey Jesstartups

The world of startups has been glamorised under the guise of millennials and their infinite genius and wanting to be lazy coming up with all sorts of weird and wonderful ways to do things better. The spirit and essence of it, I am totally on board with, why shouldn't we make our lives better? But not at the expense of making other peoples lives fundamentally worse.

Startups often get amazing publicity even before they even achieved anything, all they need is a cool name, logo and funding no matter how rubbish the product-market fit is if you have enough cash flow from backers you'll eventually overrun the competition on your way to gobbling up the total addressable market cap.

We've seen this strategy play out time and time again, and eventually, they get a point where they have enough users that the rest don't matter, they can lower their standards and prise gauge consumers to death. These startups don't just cannibalise the competition, the game is to cannibalise the consumer too.

Unicorn startups

Image Source: - businessinsider.com

No free market when capital is free

I am a strong proponent of the free market and competition providing the best way forward for both businesses and consumers. However, with the digital economy and the internet any company with close ties to free money is able to dominate their respective market, yes some do fail but the ones that succeed do so in ways that are detrimental to society.

You only have to look as far as Facebook to see what infinite access to money can do in tying up competition and making sure you remain dominant.

It is by no means a fair hunting ground, the talented startup owner can only pick away at the big guys for so long before they are either priced out or acquired, which to be fair to any business owner, taking the cash to be acquired is the rational step.

The farce of the unicorn

The unicorn is based on the idea that one company can do it faster and cheaper if given all the resources and customers but we all know that power needs to be balanced or it is corrupted, that is the nature of the free market.

The unicorn has brought us anecdotal improvements that I can agree with but the cost of jobs, the cost of production, the cost of inefficiencies it creates over time is by no means worth it.

The only reason it continues is because its wildly beneficial for maintaining the status quo of the 1%.

These money losing monstrosities are kept alive until they can be dumped on the public to take the loss or become public ulitities people are almost forced to use in a way.

Have your say

What do you good people of HIVE think? How do you justify all this money wasting?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

Let's connect

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@tipu curate

Upvoted 👌 (Mana: 5/20)

Thanks for the support 😬

There’s all this obsession with startups and a big craze around them. Frankly I feel it’s oversold a lot.

The other thing that is weird to me is what the hell is the difference between a startup and someone just creating their own business or partnership? Lipstick on a pig in my opinion. Just giving it the name startup makes it seem cool and modern?

I always get recruiters hitting me up trying to get me to join a startup. @swayzilla worked for a startup and it sucked! Sure you may get paid more after a while but the amount of work you’re doing doesn’t equal out to hourly rate in a lot of scenarios.

Most of them are snake oil salesmen disguised as innovation, yes if I give you 10 billion and you start a the uber of sandwich delivery guess what? You're going to kill hotdog stands and sandwich shops, that's a given, doesn't take a rocket scientist to figure that out, but is that a better way of deploying capital? I don't think so, these startups are a product of the financial economy looking for places to get yield and burn capital and make bets.

I've also worked in the startup scene, I continue to consult in it, I've seen so much BS thrown around and people really believe they changing the world only wish that positivity was focused on something tangible

the shrinking room for deploying capitals, thats a fact.

i voted for this post both on steem and Hive.
i think the story is described correct

have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

pls can you tell me what does it men? is it an idioma?..

Thanks for the support! Lol it’s just a little thing I started to get some tribalism going in my comments and encourage engagement

!ENGAGE 20

thanks for a nice shiny pair of tokens ;)
I feel pretty engaged into a few communities, already.

google helped to find an answer, it directed me right to your post:
https://hive.blog/life/@chekohler/is-it-really-that-simple

cheers! and a !BEER back

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

I thought we'd all agreed that monopolies were pretty much the undoing of successful capitalism in the 19th century, lord knows why we're back to the idea that they're actually good for us again!

This is why I think Hive is onto such a winner - you can fork it, set up new currencies in new communities - it makes 'disruptive start ups' so much easier and diverse and independent from the mother ship so to speak.

Handing power and information to large companies is just asking to be shafted.

Posted Using LeoFinance

It’s ridiculous that theirs still so many of them especially when we look at all the disruptive ideas that come from having smaller more decentralized economy but I guess human control or need for it trumps true efficiency

Well I do like a lot of what HIVE stands for and is trying to do, I do hope it gets there