4 ms·
It's kind of amazing that 10% of our economy is basically living on the knifes edge of revenue and liability like this. It might just be a bad mentality, I know
by SQueeeeeL 7y ago
It's kind of amazing that 10% of our economy is basically living on the knifes edge of revenue and liability like this. It might just be a bad mentality, I know in Japan, they have a tradition of corporations building up a massive treasury, but the US is basically the exact opposite
- pwaivers 7y agoI don't think 12 months without revenue is "living on knifes edge"
- weare138 7y agoThat's kind of the problem. We don't view companies that go 12 months without revenue as high risk and/or failed investments anymore. How long can companies like Uber continue to raise capital to operate when they're only generating a fraction of the revenue now and investors won't accept the long term risk?
- o-__-o 7y agoAs long as money is cheap, the rich (VCs, Angels) will throw cash at you to satisfy their tax liability. A unicorn going public is just a side benefit.
- rebuilder 7y agoI think it'll be amazing if only 10% of US firms default on debt in the next year or so.
- smabie 7y agoBut Japan hasn't been doing really well either. They've been in a recession for like 30 years straight.