There are very concrete mechanisms by which this has functioned historically: exits get reinvested into next generation of startups, operational expertise flows between firms as folks change jobs, products/technology/channel make ecosystem systemically more powerful.
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There is *sigh* bitter controversy over this ideal now, of the general form “Anyone’s success is everyone’s success” and “Only if you define your ingroup as everyone, but your ingroup’s success comes out a pool of success which could have belonged to my ingroup, and therefore...”
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