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Why try and achieve something hard like profitability when you can easily be valued at $8b and raise $800m to keep that going? I don't mean to be too critical
by kloncks 15y ago
Why try and achieve something hard like profitability when you can easily be valued at $8b and raise $800m to keep that going?
I don't mean to be too critical but sometimes I wonder if this is better than, say, Twitter finding out that it can't make more than some small amount of money in profit.
- orky56 15y agoRaising capital and valuations are just temporary measures and good faith to turn the product into a company. Having money to hire more people just exacerbates the problem. They now have higher operating costs (where this new capital goes) and now need to have the even higher revenue to create a margin that makes it all worth it in the first place. OR you just get stuck in a Groupon situation where we have big revenue off big costs (salespeople).