Often, startups try not to be profitable on purpose. They drive all profits into growth. It's better to use $1 earned into getting more customers than to have i

Often, startups try not to be profitable on purpose. They drive all profits into growth. It's better to use $1 earned into getting more customers than to have it sit in the bank or give it back to investors as a distribution. Of course, this mentality depends on the investors mindset and goals but many investors into new businesses feel this way. Fast growth today, profits/buyout tomorrow. You're more likely to see a focus on profits from founder owned businesses because they tend to not have the deep pockets that allow profits to come second to growth.