4 ms·
mistakes Color me stupid, but I am sure the vast majority of founders know exactly what they are doing when they give GVM in place of revenue. For example no
by rokhayakebe 11y ago
mistakes
Color me stupid, but I am sure the vast majority of founders know exactly what they are doing when they give GVM in place of revenue.
For example no one would buy a home for $200M, sell it for $201M and say I made $201M last year.
- tempestn 11y agoNot necessarily; many would consider $201M the revenue and $1M the "profit" or "earnings" in that case.
- dkural 11y agobut they'd know they didn't make 201M - and conceptually that them buying and selling that house doesn't value them like a 201M revenue publicly traded company with billions in market cap. Founders know exactly what they're overselling. They do it for spin.
- asmithmd1 11y agoUsing your example for a business more people understand - A real estate agency can honestly say "We sold $20M of real estate last year" and everyone knows they probably took in about $1M in revenue. With new businesses where revenue models are changing it is possible to make honest statements that mislead an investor.