Nostr Web Client

Required is not the right word Pablo.

The Silicon Valley VC model is about ploughing capital in to emergent spaces in the hope that you back one of the 1/2/3 companies that will dominate the space rather than get eaten.

These startups are given exorbitant amounts of money with no expectation of profits, just growth metrics. Grow the userbase now, work out monetisation later.

So long as they hit the growth metrics, the previous round of investors help you go milk the next round - after all, it’s increasing the book value of their investment… Sounds like a Ponzi scheme, right?

And what the hell do you do with that money? You pay for ridiculous offices, provide insane perks to attract talent away from MS/Google etc and sooner rather than later you need a middle management bureaucracy to oversee the early productive team members. That’s the beginning of the end.

“The bureaucracy is expanding to meet the needs of the expanding bureaucracy.” - Oscar Wilde

A tale as old as time. Productivity in aggregate decreases with every marginal labour unit added, it’s not “required” rather its just what happens at a certain size but the investors don’t care because their goals are completely untethered from reality.

They’re not in it for a marginal return on a solid business, they’re in it for moonshots that go 100-1000X and literally gamble on entire industries like fucking degenerates.

Nostr is going to be the end of this model!

PABLOF7z 2y ago

yes, 100%

I actually was tempted to write "require" (with quotes), but thought that it would distract from my main point.

yeah, I agree with all your saying here

except with the "go milk the next round of investors"

they know perfectly well the game they are playing and are fully aware of what's going on, that's why bitcoin-only funds are so important, because they refuse to play that cantillionaire game

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Discussion

gsovereignty 2y ago

It's possible to create an organizational modality where the boundary conditions on capital are such that investment can't be evil. Obnoxious/extractive VCs can't comprehend this modality and will have to become increasingly cut-throat as they become stranded on the shrinking islands of legacy economies.

StackSats.IO 2y ago

Honestly I don’t think traditional VCs will even bother trying this model, they’ll ride the dead fiat horse in to the ground and then keep whipping its bloody corpse. SVB is a demonstration of their mentality.

Nostr should be an opportunity for this new model to take hold meaning a new cohort of investors who aren’t in it purely to rent-seek but want to capitalise good ideas and support good devs/teams - that’s why I like nostrocket, it facilitates what *should be*

Expect a bit of a standoff though as both sides feel each other out - new investors with devs who are sick of the old way will take time to find equilibrium.