Venture Capital Backed Substack Latest Big Tech Company to Report Huge Financial Losses
As we watch the collapse of Big Tech and their financial institutions, popular content platform provider Substack's recent financial statements show that they too may soon be a casualty of reckless spending by Silicon Valley venture capitalists. It was reported yesterday that recent financial filings with the SEC show that Substack is burning through cash too quickly, and they have been having a hard time raising new capital. Substack has been in the news this week for another reason: a public argument between journalist Matt Taibbi, famous for publishing "The Twitter Files," and the current owner of Twitter, Elon Musk. Taibbi has stated he is leaving Twitter over alleged censorship on Twitter regarding Substack writers, something Elon Musk denies. As much as Taibbi and others are trying to frame this conflict as censorship by Twitter over Substack because they are afraid Substack is going to compete with them, the evidence seems to point to the opposite, given the fact that Substack is reported to be bleeding huge financial losses, and that venture capital firms turned them down in 2022 to raise more money. That includes Andreessen Horowitz, who is heavily invested in BOTH Twitter and Substack, as well as Elon Musk himself, who reportedly had an opportunity to buy Substack last year, but declined. All the evidence points to the same kind of financial troubles that other Big Tech companies are currently suffering which is leading to massive layoffs: "cheap money" has now disappeared since the Fed began raising interest rates, and these bloated Big Tech companies have been caught with their pants down, showing that their business model of investing first, and hoping you can earn a profit later, just won't work anymore.
