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Coming from the manufacturing sector, the idea that anybody could fail to have an instinctive terror of negative cashflow... horrifies me.
by qubex 7y ago
Coming from the manufacturing sector, the idea that anybody could fail to have an instinctive terror of negative cashflow... horrifies me.
- imtringued 7y agoA lot of companies would be fine with 5-10 million in funding and organic growth. However investors don't want to manage thousands of small profitable private companies. They want fast growth and then exit quickly in a bang. This means a lot of companies get 3-5 times more funding than they need, then generate a nice profit but not enough to pay back the excess funding and finally shut down.
- MichaelApproved 7y agoWhy would they shut down if they generate a nice profit?
- ses1984 7y agoRight, if they can't pay back funding, they haven't made any profit yet.
- hef19898 7y agoSame here. But wasn't there a statement (on Uber?) on a previous thread her jokingly talking about cash flow after funding? That being said I know more than one manufacturing company from experience that gave shit about cash flow. Result, so, have been predictable.