Disruption Favors Collaboration Over Competition

Conway's law suggests that a product reflects the organization's structure that developed it. In venture capital, a healthy ecosystem with ample opportunities for innovation exists when addressing large, total addressable markets (TAM). This environment allows for cooperative competition, known as coopetition, where various players can coexist and thrive by riding waves of disruption, as seen in the rise of cloud computing over legacy software. However, merely replicating existing ideas without offering real value or improving customer economics can lead to stagnation. Effective technology should aim to deflate costs and enhance utility, distinguishing between genuine innovation and opportunistic models that exploit regulatory gaps without delivering substantial benefits to consumers.