A thing I think is underappreciated: prices measure changes which have often already happened in the world. The change in price is not itself usually the event itself. (Speaking of prices for assets here more than for products.)
-
-
Pricing attempting to simultaneously predict the future while being set in reference to the past is one of the things which causes so much confusion in the tech industry about it, because many folks’ intuitions about how companies should be valued are informed by regular life.
Show this thread -
Regular life, including many great businesses, doesn’t have virtually any curves which look like 10% month over month growth sustained per year. So people largely are calibrated to assume that they mostly don’t happen. (They do happen.)
Show this thread -
This is one of the reasons venture investors specialize, because the wider markets are like the HN comments inevitably saying “So when is this business going to be profitable?” Venture investors specialize in being indifferent to that contingent on demonstrated growth.
Show this thread -
(I’m being a bit handwavy, because there are stages in VC which happen prior to there being any demonstrable growth, though VC funds seem to be mostly abandoning them to angels/accelerators the last few years.)
Show this thread
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.