When Congress called in the technology CEOs to testify a few weeks ago, it seemed like a defining moment. Hundreds of startups have become unicorns, with the largest being worth more than $ 1 trillion (or possibly $ 2 trillion). In fact, modern tech companies have become so entrenched that Facebook is the only one of America's Big Five tech stores worth less than 13 figures.
The titanic valuations of many companies are based on current performance, available liquidity and high expectations for future growth. The pandemic did little to stem Big Tech's forward march, and many startups have seen growth rates accelerate as other industries have rushed to support a suddenly remote workforce.
But within the current light moment of technology there is a concern that Congress has been working to highlight: Are these companies behaving anti-competitively?
By now you have heard the arguments concerning because Big Tech may be too big, but there is a second interesting story that we, the Equity of Equity, have talked about: some startups are competing in the great killing zone.
They have to be a bit reckless to take on Google Gmail and search, Amazon's e-commerce platform or Apple's App Store. However, there are startups that target all of these categories and more, some filled with VC funding from investors eager to give a twist to the biggest players in tech.
If small companies manage to carve out material market share, the arguments that Big Tech was too big to kill - let alone fail - will dissolve. But today, their assignment is a reality and these startups are just plain bold.
However, when we look at the work done, there are enough companies staring at the most valuable companies in American history (on an unadjusted basis) that we have had to shout at them. Say hello to the "anti-antitrust club".
Hey and Superhuman are coming after Gmail
Gmail has been the undisputed leader in consumer email for years (if not corporate email, where Microsoft has huge inroads due to Exchange and Outlook). Startups have contested that market, including Mailbox, which sold to Dropbox for around $ 100 million in 2013, but whenever a new feature came along that could appeal to users, Gmail managed to suck it into its app.
