The ultimate symbol of that arrogance, of course, is tech company valuations. The latest example is Slack, a one-year-old chat tool for businesses, whose funding round this week prompted cries of disbelief. “Is Slack Really Worth $2.8 Billion? It is, because people say it is,” said the CEO.
Of course he’s right, in a sense: Markets, not tech company founders, determine what their companies are worth. But when founders conflate market value with true value, they start to think they can do no wrong. That’s where their downfall begins
For a decade, it seemed like the technology industry was going to usher in a newer, friendlier form of capitalism. The CEOs wore t-shirts and hoodies. Their staff had spare time to improve the world. They said they wouldn’t be evil. For a while, web users believed them.