3 ms·
showing a paper loss when you are actually profitable means you are overspending short term. It is not healthy for a business. It is no different than a person
by marme 11y ago
showing a paper loss when you are actually profitable means you are overspending short term. It is not healthy for a business. It is no different than a person with a good job and salary who is hundreds of thousands in debit. You are basically spending future money that you have no earned yet. In the case of startups that future money is VC money
- pookeh 11y agoIf they are spending their own money then they are not in debit...it is only if they are borrowing. Either case it is a paper loss except in the former case the example you give is reversed.