The value of failure

The Indian stock markets are bracing for another wave of what the fashionable set calls 'digital IPOs'. The definition keeps evolving with each new buzzword – platform, AI, technology-enabled and so on. My definition is simpler and more accurate: companies that have never made a profit and probably never will. The real damage from these unprofitable digital companies goes far beyond individual investors losing money in overpriced IPOs. It strikes at the heart of how market economies are supposed to function. Suggested read: Warning signs in tiny IPOs Why does a market economy generate more wealth and growth than a controlled one? The reason is failure. The greatest advantage of a market economy is not just that good businesses succeed but that bad ones fail. Businesses that cannot make money are forced to shut down quickly, freeing up resources of all kinds that flow into good businesses instead. The entire ecosy