Source: Bloomberg News
Summary
Bloomberg reports that Silicon Valley’s long-standing informal rule of not investing in competing startups is weakening. According to sources, venture capital firms are increasingly funding companies that directly challenge their existing portfolio. The shift is attributed to rising competition and the need for diversified returns. Some investors say the policy was never strictly enforced, but the trend is becoming more visible.
Our Reading
The launch follows a familiar script.
VCs used to avoid funding rivals. Now they’re doing it anyway.
It’s not a policy. It’s a suggestion.
AI and cloud startups are getting cash from the same firms that backed their competitors.
It’s not a betrayal. It’s just business.
Author: Evan Null
Original Observation
It’s not a collapse of ethics. It’s a collapse of restraint.
The New Normal
The rule was always more of a guideline than a law. Now it’s just a guideline that’s being ignored.
Investors are no longer worried about pissing off their portfolio companies. They’re worried about missing out.
It’s not about loyalty. It’s about profit.
The Valley’s old ways are being replaced by the same old greed.
It’s not a shift. It’s a return to basics.
Why It Matters
The rule was never about fairness. It was about avoiding conflict.
Now, with more startups and more money, the conflict is inevitable.
VCs are no longer the gatekeepers. They’re just players in a bigger game.
The old rules don’t apply when the stakes are higher.
It’s not a scandal. It’s just the market working as intended.
The Hype Cycle
Every few years, the Valley claims to be changing. This time, it’s not.
The same investors are making the same bets. Just with more transparency.
It’s not a revelation. It’s a confirmation.
People are surprised, but they shouldn’t be.
The Valley never really stopped backing rivals. It just stopped pretending.
What’s Next?
The rule may be gone, but the tension remains.
Startups will still be wary of their investors’ other bets.
VCs will still try to play both sides.
It’s not a new era. It’s just the same one with a different name.
The Valley’s real rule is: never say no to money.
