Earlier quoted context omitted.
Yeah, it is the chat program treadmill. Spend investor money to host a completely commoditized program. Of course it is better than the version that costs money by virtue of being free. Eventually run out of investor money and do something unpopular to raise revenue, leaving the opportunity for the next iteration to come in for free and take your spot. The only thing I don’t really understand is why investors keep fa…
Investors aren't falling for it. Users are falling for it. Leaking millions for years pays off in the end, or even half way through. Some investors would exit at some stage. Taking profit due to valuation going up, despite no revenue/profit. At the end of the tunnel is acquisition by a major player who is basically buying the users. Typical examples: Skype, whatsapp. But also LinkedIn. GitHub. Businesses that offered…
(notable that three of the four greater fools in your post are Microsoft)