
Billion Dollar Startups Save People Money - rgbrgb
https://medium.com/the-mission/billion-dollar-startups-save-people-money-ba5fdfbe420e
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tabeth
Any organization that's not profitable won't be saving people money for long.

Generally there are two scenarios:

1\. The company is not profitable, and VC money is subsidizing the cost.
Eventually they'll either close down, in which case you will no longer save
money (arguably it's harmed you indirectly. The money could've been used for a
more sustainable venture that would [definitely] save you money), or they'll
raise prices.

2\. The company is already profitable, and whatever product or service you're
purchasing that's apparently saving you money in actuality has a cost, that
may not affect [you] per say, but the company definitely is making money off
someone.

~~~
rgbrgb
3\. The organization has significantly lowered the cost of service via
technology and is able to pass this savings on to the consumer. This one is
pretty common in "file cabinet" industries Garry Tan often references [0].

[0]: [http://venturebeat.com/2016/10/24/initialized-capital-
raises...](http://venturebeat.com/2016/10/24/initialized-capital-
raises-115-million-for-its-third-fund/)

