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> grow so big so fast you consume the entire market That isn't the unpopular part. The derided part is doing so with poor unit-economics. You still need to mak
by jacobr1 4y ago
> grow so big so fast you consume the entire market
That isn't the unpopular part. The derided part is doing so with poor unit-economics. You still need to make a profit or what is the point?
Another big difference is that is very common to run at a loss early on in the life of startup ... but when examined more closely the marginal costs should still make sense. If you are small enough that R&D overhead, or hiring ahead of revenue (growth investment) is overshadowing the top-line ... well that is the just normal startup finances. But there still needs to be a business model where it will make sense with enough sales, and the cost will have sub-linear growth relative to the revenue.
- adamsmith143 4y ago>Another big difference is that is very common to run at a loss early on in the life of startup How many Unicorns are actually making a profit? Hell how many Deca or Centi-Unicorns are profitable? There's probably hundreds of billions of value in companies that are not and don't have clear paths to profitability. So I think we've moved from it being ok to be unprofitable when you start a company to it being ok to be unprofitable for decades...