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0 pointsscarface744y ago0 comments

So how well does revenue tell a story if you have negative unit costs?

If you keep losing money, you eventually run out.

0 comments

Nope. Cause you have growth, which gets new investors who bring in Money - if you can convince them your Growth numbers are good.

scarface74OP4y ago

It’s called a Ponzi scheme. It works until it doesn’t. See Robinhood and Peleton.

All five of the Big Tech companies were profitable before they went public. Even Amazon had positive margins and they were plowing money back in to the business. Most of the former unicorns don’t have positive margins.

“Growth” is okay if your funneling profits back into your business. But see DoorDash. How do you not money delivering food when everyone is afraid to leave their house like in 2020?

It’s not about growth, it’s about attrition. Every VC is hoping that they can pawn their money losing investments off to a gullible public.

AniseAbyss4y ago

The money doesn't run out for as long as your investors have faith.

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