Published online by Cambridge University Press: 07 January 2026
Chapter 3 takes up the links between digital technology and broader capitalist developments by exploring the systemic ties between financial capitalism and the digital economy. It starts with the direct interactions: the IT industry as the main supplier of technology used for ‘innovation’ in the financial sector (high-frequency trading, data-based asset management, etc.) and Wall Street as the main supplier of investment capital for the digital economy. The argument then turns to more indirect similarities and filiations. Both the banking sector and the internet industry deal, on an ontological level, with goods that are not scarce (to them). They make money by selling access to virtual goods that can be produced at very low cost. Banks create money by issuing credit essentially with a keystroke; internet companies distribute non-rival digital goods that they can multiply without relevant costs. This leads to similar business practices appearing in both fields. The chapter explores these in depth and frames them analytically, concluding that the most successful digital corporations owe their accumulation practices to role models in the financial sector. The chapter identifies venture capital as a specific type of financial capital that has been essential to the growth of digital capitalism. It explores its rise throughout the dotcom boom of the 1990s, analyses it as a strong driver of economic crisis and shows how the period after the financial and debt crisis of 2008/09 (roughly the past ten years) resembles the 1990s.
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