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VC cash is running out


:!marseybooba:

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It really cracks me up to think about what a giant burning pile of rich people's money reddit has consumed over the span of its entire existence.

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Reddit is, and has been for years, a gigantic propaganda factory. Even if it lost money, it won elections and customers for its true end-users.

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Is that what the really late-stage funding rounds were actually about? Disguised quid pro quo?

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That doesn't neccesarily mean there was a secret agreement between VCs and reddit hashed out in a smoke-filled room.

Nevertheless, the rich and powerful recognise how useful and powerful reddit is as a propaganda organ. Ergo, they drop the cash to keep it online.

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All I want is for the janitors to start to feel the pain, remove them all in favour of AI moderation or something

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Why don't u like jannies :marseytears:

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Its amazing that they manage to have such high operation costs. Its a large forum that hasn't had a single positive change in a decade.

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Hey, moving into, and then back out of, San Francisco is expensive.

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tumblr alone burned a billion, imagine what reddit blows through - by their own admission during the app shitshow they've never had a profitable year

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It's a mutually beneficial deal if you want to promote a message.

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Interest rates are up and now they actually need to make money

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genuinely correct answer. The money hose is tapped, so companies that don't actually produce anything, let alone anything of value, have started scrambling.

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Unironically this

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Can't this be said about any industry, that they somehow have to generate absurd ROI?

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Sure but tech companies were getting r-slurred money from investors hoping to cash in on the next big thing and had massive price/earnings ratios. In most industries if you never turn a profit for 10 years you go out of business.

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in the last five years people realised that social media sites don't actually produce anything or make any money so they're desperately trying to monetise.

Even YouTub is a money suck. We're basically in the middle of another Dotcom bust

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all of a sudden

https://media.giphy.com/media/pK6k4BNalmx44CQj3v/giphy.webp


![](/images/16674454055116708.webp)

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They're beginning to think that their sites have become "too big to fail."

There is some legitimacy to this idea. Sites form communities, and those communities are a big selling point for them. These big websites have accumulated enormous communities over time.

This has made it impossible for any upstart competitor to thrive, because no matter what you do you can't grow a community as big and attractive as the ones in big sites who had a head start.

So these guys essentially have an oligopoly over online spaces. They have no competition, so they can do whatever the frick they want.

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Whatever they want, except turn a profit :marseysmug2:

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