What should we do to ensure capital allocators (VC, etc) begin to care more about stagnation? I believe we have enough evidence at this point that when interest rates are low and there are fast growing companies with 80% gross margins (a relatively ahistoric phenomenon) - many capital allocators will optimize for book value mark ups and liquidity as opposed to backing enduring productivity growth bets. Perhaps Marc Andreessen’s “It’s time to build” blog post led to an early zeitgeist shift here—what should we do next?
I think it suffices if they simply care about their profit. Ideally, VCs would speak up more for progress, but a lot of them are already pretty good on these issues. They are far from the problem. It is all the other interest groups that I worry about.
What should we do to ensure capital allocators (VC, etc) begin to care more about stagnation? I believe we have enough evidence at this point that when interest rates are low and there are fast growing companies with 80% gross margins (a relatively ahistoric phenomenon) - many capital allocators will optimize for book value mark ups and liquidity as opposed to backing enduring productivity growth bets. Perhaps Marc Andreessen’s “It’s time to build” blog post led to an early zeitgeist shift here—what should we do next?
I think it suffices if they simply care about their profit. Ideally, VCs would speak up more for progress, but a lot of them are already pretty good on these issues. They are far from the problem. It is all the other interest groups that I worry about.