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I'd venture to guess that the vast, vast majority of American startups that raise a series A are not cash flow positive.
by rco8786 11y ago
I'd venture to guess that the vast, vast majority of American startups that raise a series A are not cash flow positive.
- AstralStorm 11y agoHow about data at series B? A startup should become profitable pretty soon if it really has a handle on the market... If it doesn't after years, it's probably dead even if it's churning through money.
- rco8786 11y agoThat might become the norm for the next few years in a slower VC market. But, at least in SV and NYC, it's been pretty common to raise multiple rounds before profitability. Companies can choose to not be profitable on purpose though, by re-investing revenues back into the business. Heck, Amazon's basically never turned a profit.