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When Andreesen talks about "tech funding", what do they mean by this?

A lot of VC funding that used to go to "tech" companies is now going into much less profitable types of businesses that should not be considered "tech". Businesses that most VC's don't really have a lot of experience with.

For example, their investments in Soylent, Walker and Co, Dollar Shave Club. It is REALLY hard to make money in these types of businesses when compared to software. They could be in for a rude awakening...

Bingo. A very large part of recent "tech" startup scene is just the good old "doing X but now with a smartphone" pattern. Or even worse "Sending a person with a smartphone to do X for you when you call them using your smartphone". I simply don't know how these businesses are supposed to be profitable at the scale they're supposed to grow to. Will Uber still be cool when it has a million quasi-employees? Will the governments around the world still allow the "quasi" part to stay intact at that scale - highly unlikely.

> Will the governments around the world still allow the "quasi" part to stay intact at that scale - highly unlikely.

By the time that happens, Uber will be as big as google. They will find a way - when lot of smart people work together, they generally do.

I'm not predicting Uber's demise. I'm casting doubts on continued revenue growth and margin protection to justify the skyhigh valuation (since this is a thread about private funding valuations).

Uber doesn't have a monopoly on smart people. Pretty soon each and every significant market in the world will have a local competitor who'll know how to play the local system better than Uber and not to piss off civic stakeholders to this extent. There's nothing to stop the competition either. Drivers already on the road with Uber can be easily persuaded to install a second app with a small financial incentive. It's absolutely a commodity play for them. Same for consumers. It's a classic race to the bottom competitive situation, great for consumers and perhaps even the drivers but not necessarily for the company.

As big as Microsoft when the EU handed an antitrust judgement down to them?

If your business has a website, it is now a "tech" company.

It's a brave new world.

Us consultants call this the "Digital Business Transformation"

Not new at all. I remember reading articles in the media in 98-99 about "tech" stocks like pets.com and etoys. Anything back then that had a website was a tech stock just like anything with an app is a tech stock these days. Nothing new to see here...

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