It’s become increasingly evident that not all that glitters in the investment world is golden, or even tech for that matter. In the rush to scale and dominate, many companies, riding the wave of technological promise, have veered off course. They’ve taken substantial financial gambles in markets where the so-called ‘tech’ aspect was either overestimated or non-existent. This pursuit, which I find quite fascinating, reveals a stark reality - sometimes, a ‘winner takes none’ scenario unfolds not due to a lapse in innovation, but because of a misalignment in business strategy.
This reflection brings to light the intricacies of business models that claim high-tech status but are anchored in traditional, fixed-cost structures. They’ve been propped up by narratives that promise transformation through technology. Yet, upon closer inspection, they often lack the substance to support such a transition.
In essence, I see this as a cautionary tale. It’s a reminder to look beyond the dazzle of ‘tech’ labels and assess the fundamental economics at play. As I delve into the stories of companies that burned bright and fast, I’m reminded of the need to discern between genuine innovation and mere blitzscaling towards the wrong target.
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