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The startup model is all about exponential increase of the user base. For example, Amazon was running at little to zero profit until 2015 [1]. Google and Facebo
by utopcell 5y ago
The startup model is all about exponential increase of the user base. For example, Amazon was running at little to zero profit until 2015 [1]. Google and Facebook added ads years after they became extremely popular.
What you're saying makes perfect sense to me though.
[1] https://www.macrotrends.net/stocks/charts/AMZN/amazon/net-income https://www.macrotrends.net/stocks/charts/AMZN/amazon/net-in...
- scarface74 5y agoOnce you go public, you can no longer call yourself a “startup”. All of the companies mentioned were public. Facebook was profitable before they went public. The main reason they went public if I remember correctly, is because they had more than 500 shareholders and it made it more difficult to stay private. As far as Amazon, Amazon wasn’t GAAP profitable. But it did have positive cash flow and was investing in infrastructure. The companies mentioned above have very slim to no marginal profit. They are literally selling dollars for 95 cents.