The public markets are so saturated that VC is the only area that money can get a large return on investment. That's why it has become so popular in the past 2 decades.
By the time numerous funding rounds are done and the company has been fully valued the VCs then take it public where the general investing public get the scraps. The public becomes the exit liquidity while the VCs have enjoyed all the upside.
Worse than that, it's not just exit liquidity, it's dumping a company on the public where it isn't even clear that it can ever be profitable!
You dont have to build something that actually works and make money. Just generate a shit ton of hype and put some decent numbers on a sheet. Bam, you're a millionaire
Yes the current model is growth at any cost, monopolize the market and squeeze all competition out. Once you're the last one standing raise prices. Amazon did this, Uber and Lyft are the last two standing. The battle in food delivery is currently happening. Grubhub, doordash, Uber eats, postmates , go puff. Same game playing out. None of these companies are profitable.
Only possible with unlimited money and cheap interest rates. You can operate at a loss for 15-20 years until you monopolize an industry then you set the prices. Totally guts the economy.
