Shervin Pishevar is one of the most accomplished people in the world of tech finance. He is the founder and CEO of Investment company, one of the most prominent and prolific venture capital firms in Silicon Valley. He has been instrumental in the founding and growth of Virgin Hyperloop, Uber and Airbnb. Shervin Pishevar has also founded a number of companies on his own, including Ionside, WebOS and Social Gaming Network.
Shervin Pishevar also runs one of the most-followed Twitter accounts in the technology sector. He has more than 100,000 followers, who hang on his every word. Recently, Shervin Pishevar engaged in a more than 24-hour tweet storm where he went into detailed analyses regarding a wide breadth of topics. One of the topics that he addressed is the current problems that tech monopolies are posing for startups.
Pishevar is no stranger to the world of cutthroat tech startups. As someone who has helped to launch dozens of companies, he has seen the many methods that are used by the Big Five tech monopolies to shut down potential competitors before they reach the point of posing a serious threat to the monopolists’ markets.
Shervin Pishevar says that one of the ways in which new startups are driven off is through the particularly nasty practice of lawfare. The way it works is that companies like Google, with nearly unlimited cash reserves, can invest $50 or $100 million in paying teams of top-end lawyers to harass competitors with nuisance lawsuits.
In many cases, these lawsuits are completely specious. Yet, the companies who are targeted by them are forced to show up in court and defend themselves, lest they incur default judgments that could put them out of business. The fact that companies like Google can outspend these new startups by factors of 10,000:1 or more means that, eventually, these firms can be exhausted by court costs.
Even when the monopolies lose, they win because even if they end up having to pay court costs, all of that money comes out of operating capital until the court case has been resolved. And in many cases, such resolutions can take years.