If anyone is concerned about startups, it is Shervin Pishevar. As an early investor in a large number of successful startups, including Uber and Airbnb, Shervin Pishevar is constantly looking at new companies as well as the state of the economy.
Recently, he decided to speak his mind on Twitter. Dozens of tweets were sent out over the span of 24 hours, commenting on various aspects of the economy. Within these tweets, he talked about how startups might be in trouble.
Monopolies are Ruining Everything
Shervin Pishevar identified that there are quite a few monopolies in the United States and the government is currently doing nothing about them. Amazon, Alphabet, Google, and Apple are among them. They have access to more data than even the sovereign of a country.
Why Do Monopolies Spell Trouble for Start-Ups?
Many of the monopolies will buy the startups before they have a chance to show their competition. This means that the monopolies are taking advantage of all of the innovation that these new companies have to offer. Shervin Pishevar refers to them as silent assassinations. No one hears about the competitors because the monopolies have chosen to offer them incredible deals that a new entrepreneur simply can’t turn down.
The problem is that if the monopolies continue to grow, they will gain even more power than what they already have.
Shervin compares the monopolies to that of Ma Bell. Once the phone company broke up, it made way for a large number of new companies. This is what was best for the economy and breaking up these new monopolies will be what’s best for the economy and consumers around the globe, too.
43/ Just like Ma Bell, these 5 giants have too much power, stifling startups. Uber might be the last giant to eke out before it was too late
— Shervin Pishevar (@shervin) February 6, 2018
If the government doesn’t do something about the monopolies soon, more and more startups will experience the same fate as recent ones. They won’t become competition for the monopolies because they will be consumed by them instead.