The Role and Impact of Venture Capital

Venture capital plays a crucial role in shaping the development of startups, particularly in the tech industry. Despite funding only a small fraction of new enterprises, its influence drives the ideology of scaling, whereby rapid growth is prioritized over stability. This obsession with scaling pressures managers to maintain forward momentum, often leading to the exploitation of low-wage labor to support operational demands. The resulting organizational dynamics create a landscape where only a select few at the top benefit financially, while risks and inequalities are disproportionately borne by those at the bottom.