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> Is there no room for small, stable, profitable companies in startupland? There is room for them but outside of startupland - a small, stable, profitable comp
by PeterisP 4y ago
> Is there no room for small, stable, profitable companies in startupland?
There is room for them but outside of startupland - a small, stable, profitable company is the exact opposite of a startup, and has entirely different funding and ownership models than startups do.
If it's stable and profitable, then it doesn't need investors, and if it's stable and not expected to become huge, investors don't need it.
If it's small, stable and "needs investors" because it's not profitable, well, then it has fizzled already.
- presentation 4y agoJust because you're stable and profitable doesn't mean your business wouldn't benefit from investment.
- PeterisP 4y agoSure, but that would be a very different kind of investment than the risk capital / venture capital investing in a startup. A stable and profitable company can (and often will) raise capital by loans, bonds, IPO or normal stock sale to investors outside of startupland on quite different terms and conditions. And, crucially, a stable and a profitable company doesn't need investment even if it would benefit from it, it wouldn't fizzle out without investment or (obviously) it actually isn't stable or profitable.