Technology

Opening up to institutional investment means opening yourself up to ownership by a culture that demands infinite growth. In recent years this has gotten particularly bad; with the rise in interest rates, stocks can no longer deliver moderate growth and still be considered worthwhile investments. Everything is either a rocketship to the moon, or its a sell. Combine that with a string of US court cases that have interpreted tge law in such a way as to foster the belief that its illegal for companies to put anything ahead of shareholder value, and what you get is a top down imperative to squeeze the maximum profit out of everything. When you see Microsoft mulling over ideas like putting ads in your start menu, or EA talking about in-game advertising, this is why. When you see Spotify raising prices multiple times while crowing about how their content production costs are basically non-existent and changing their contracts so that smaller artists literally don't get paid for their music, this is why.

Mostly that IPOs put companies into 'infinite growth mode' which is obviously impossible, so their product just degrades over time. They can't just do 'good enough' anymore.

Going publicly traded fucks every company up with nextquarter-itis.

Because the more commercial they get, the more they stray from their original purpose as a charity to provide low-cost machines for kids to learn about computer science.

First there was the Dynabook, then OLPC, then Raspberry Pi, and now we've basically got to start over yet again because enshittification is imminent.

In Tech, an IPO means the business is market ready to be sold off in pieces, ie stocks. The people who buy the product don't care what it does, they use the product maker as a vehicle to more growth and profit. Typically that means the people who now own the business make poor choices about cost cutting, like off shoring support and removing unuseful documentation while removing people with critical tribal knowledge about processes. Each step the new owner takes will be to make the business more profitable, and in the world of business, the only thing they care about are the numbers and not the environment or people that created those numbers.