I don't think the problem is with capital writ large, but rather the perverse influence of capital incentives as applied to a personal security product.
The value one gains from a personal security product (data portability, availability, accessibility) is often at odds with the interests of capital, which lean towards moat construction and rent-seeking. Over time, in a for-profit company, capital will always "win". Trading equity for other peoples' cash investments only accelerates the process.
For an adjacent example, LastPass never took a dime of VC money (afaict), but their structure as a for-profit company pushed them to lock down their product and charge rents, where they had not previously. If they had taken VC money or went public instead, it may have delayed the inevitable, but it only would have been a delay, not a solution.
People in this thread are disappointed, because these companies began their lives with a compelling, free, and user-empowering invitation, and it is sad (although not at all unpredictable) to see those features taken away by the incentives of capital. I think it's understandable, and I wouldn't read it as an indictment of VC writ large.
The value one gains from a personal security product (data portability, availability, accessibility) is often at odds with the interests of capital, which lean towards moat construction and rent-seeking. Over time, in a for-profit company, capital will always "win". Trading equity for other peoples' cash investments only accelerates the process.
For an adjacent example, LastPass never took a dime of VC money (afaict), but their structure as a for-profit company pushed them to lock down their product and charge rents, where they had not previously. If they had taken VC money or went public instead, it may have delayed the inevitable, but it only would have been a delay, not a solution.
People in this thread are disappointed, because these companies began their lives with a compelling, free, and user-empowering invitation, and it is sad (although not at all unpredictable) to see those features taken away by the incentives of capital. I think it's understandable, and I wouldn't read it as an indictment of VC writ large.