That’s fine as long as the external funding is being used to invest in capital / production - see Amazon where their years being criticised for being unprofitab

That’s fine as long as the external funding is being used to invest in capital / production - see Amazon where their years being criticised for being unprofitable but just supported by external VC funds (if you ignored that the funds were being used to buy capital and expand) quickly turned into one of the most profitable companies in the world.