How VCs kill Startup Disrupting Startup? So imagine you are the CEO of Amazon and are worried about facing competition. What will you do? Here, these CEOs depend on their VC friends to help them tackle competition. VCs will spend their time looking for a startup that could be a threat to Amazon. Then, they’ll invest millions into it and convince other VCs to invest as well. But as you know, millions in funding come with diluted equity and a seat on the board. These VCs then use their power to block the company from making certain decisions (like raising more funds, acquiring another startup, or expanding). And that's how they put the startup in trouble. Now, that partly dead startup is either left to die or acquired by giants like Amazon itself, killing its competition.
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