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I think this is an interesting observation. I am curious to know, what would you say an ideal net income pre-IPO for a tech company aiming for profitability sho
by yingw787 8y ago
I think this is an interesting observation. I am curious to know, what would you say an ideal net income pre-IPO for a tech company aiming for profitability should be? I have no idea. I thought it might be enough to simply prove profitability in the pre-IPO phase, and then use additional capital raised post-IPO to flesh out their moats and prepare for faster growth in the future. I don't see why the public markets might demand an immediate cost cutting, unless they seriously are that short-sighted (but I don't know anything about public markets).
I'm hoping that Zoom can prove you can be profitable and still succeed in the public markets. That piqued my interest coming to this post. It sucks how many companies just stay unprofitable and private, or go public only for employees/founders/investors to dump shares and run.