B2C startups have bigger caps because the network externalities allow for bigger bubble valuations (1MM users who never pay for anything, because the internet i

B2C startups have bigger caps because the network externalities allow for bigger bubble valuations (1MM users who never pay for anything, because the internet is free = $1B valuation). As PG has said- the value of such a firm is basically the chance they're the next google; therefore, no need to be profitable. B2B businesses are much more defined, much more down-to-earth, and make good money. Whilst it won't be as sexy, it will make you money- possibly even without ever needing an investor.