Shell economy
Here we have a shell economy. There is an idea, founders, shiny office and goings to fund raising parties. Instead of doing actual work, there are rounds of beggings and sweet talkings.
- Look, we want to build the fastest DRAMs and we will make a ton of money!
- Do you have engineers?
- Yes, we will get contractors if needed
- So how are you going to develop it?
- We have a specification already created
- But how are you going to build it?
- We made some inquiries on AliBaba and two factories said they'll make it, we only need money to spin up the production run!
- So what's your margin?
- Depending on the factory, we may get 50-100%!
- So you don't actually make it?
- Look, we will have a huge marketing team and pizza Fridays! We just need an investment.
and so on and so forth...
That's how tech industry now works in the West.