> The value is immeasurable, it's just that finance can't get a piece.
Plenty of people make money from this: your ISP, the utility company that pulls cables under the road, the construction company that dug up the road to put them in, the owner of the site where your ISP's network equipment is located, and many of the websites that you interact with.
I believe that the source of the confusion here comes from trying to slice the world into "VC monetization" and "human value", as if these were different or opposed things. I have a different way to look at this space which reveals useful insights:
We see lots of technologies go past that people seem to be excited about, but which then fail in the market. It is currently popular to imply that this means "the market" is some alien thing which is not aligned with what people want. A more realistic view is that people have multiple levels of interest. We can order some of them from lowest to highest:
- willing to read an article
- willing to write a comment on the article
- willing to blog about the technology
- willing to open their wallet
- willing to pay the full cost of making it
What we see is that a lot of technologies can only reach levels 2 through 4: people are interested, but not interested enough to cover the cost of making it. By any reasonable standard, that means we shouldn't make the thing: its value to people is less than the value of the raw materials that went into it. "Failed in the market" is a way of summarising this decision, but it gets a lot of negative press because it hides all the details so people don't understand the value comparison being made here.
The neatest mnemonic to think about this is "money is the unit of caring: you can measure how much people care about a thing happening by measuring how much money they are willing to spend on it".
"VC monetization" fits neatly into this picture: VC want to know more or less immediately if people are going to reach interest level 4 or 5 on this scale. They do not want to burn time and money on things which can only reach level 3: those things never had a future. You cannot tell the difference without asking people to open their wallets.
Plenty of people make money from this: your ISP, the utility company that pulls cables under the road, the construction company that dug up the road to put them in, the owner of the site where your ISP's network equipment is located, and many of the websites that you interact with.
I believe that the source of the confusion here comes from trying to slice the world into "VC monetization" and "human value", as if these were different or opposed things. I have a different way to look at this space which reveals useful insights:
We see lots of technologies go past that people seem to be excited about, but which then fail in the market. It is currently popular to imply that this means "the market" is some alien thing which is not aligned with what people want. A more realistic view is that people have multiple levels of interest. We can order some of them from lowest to highest:
- willing to read an article - willing to write a comment on the article - willing to blog about the technology - willing to open their wallet - willing to pay the full cost of making it
What we see is that a lot of technologies can only reach levels 2 through 4: people are interested, but not interested enough to cover the cost of making it. By any reasonable standard, that means we shouldn't make the thing: its value to people is less than the value of the raw materials that went into it. "Failed in the market" is a way of summarising this decision, but it gets a lot of negative press because it hides all the details so people don't understand the value comparison being made here.
The neatest mnemonic to think about this is "money is the unit of caring: you can measure how much people care about a thing happening by measuring how much money they are willing to spend on it".
"VC monetization" fits neatly into this picture: VC want to know more or less immediately if people are going to reach interest level 4 or 5 on this scale. They do not want to burn time and money on things which can only reach level 3: those things never had a future. You cannot tell the difference without asking people to open their wallets.