Adeo Ressi, Founder Institute: Facebook, Google, Amazon, Uber don't have positive effects on humanity. Replace them

Startup Mashup

Adeo Ressi, founder of Founder Institute, entrepreneur and investor, talked to start-up.ro during a podcast in Bucharest about the issues of hypergrowing in the startup world and the fallacies brought by superfunds and superfunding.

Adeo Ressi talked about the problems in the startup ecosystem: „There are two endemic foolish things that has happened in the world of startups and a correction is underway. The first endemic foolish things is hyperfunding to pursue and achieve hypergrowth. This has massive unintended consequences that have really damaged society. Examples are Uber, Lyft and others. The hyperfunding of them for hypergrowth has really created an untanable labour market, where you’ve got drivers that buy expensive cars, start making money, meanwhile Uber and Lyft are reducing rates, so now you’re creating this situation of servitude where drivers who buy an expensive cars have to maintain them with decreasing living wages. Now they are working just to keep the car, not making a lot of money besides that, having 3-4 jobs to get at the end of the day”.

„To some extent, you’re not gonna fix Apple. That company is broken at the core. You’re not gonna fix Amazon, Facebook. What we need to do now is to build better models. The Softbank fund of hyperfunding companies to get the hypergrowth thank God it broke. It shouldn’t work. It’s bad. It’s proven to have unintended negative consequences that outweigh the positive consequences”

„We need good business models run by good people, we need good investors, good founders, good incentives in the public markets, good regulation and create a new class of billion and trillion dollar companies to replace the Google, to replace the Facebook, to replace the Amazon, to replace the Apple that are not having positive effects on humanity.”