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Why bother investing and prying when you can simply buy those companies off once they become large enough?


Cheaper to make a small investment, take everything you want and let the company fail. Simple economics.


That's true but on the other side, ideas are sold dime a dozen, only their successful implementation proves in hindsight that the idea was worth something. Stealing ideas doesn't mean much as they are available aplenty but a startup which successfully implemented that idea is worth something.


Ideas can be promising but implemented sub-optimally. Using this method, they get inside information on where things can be improved. Then they have the financial clout, the data analytics and the resources in place to create a successful final product.




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