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> "The first and main takeaway is this: Companies which receive VC funding are not profitable." This is patently untrue and deceiving by the author, doubtlessl
by franciscop 3y ago
> "The first and main takeaway is this: Companies which receive VC funding are not profitable."
This is patently untrue and deceiving by the author, doubtlessly set to tell a narrative. Sure, some companies that receive VC funding are not profitable, maybe even most, but a sizable portion of the companies that receive VC funding ARE profitable. Denying this is deceiving the readers. In fact, the easiest way to receive VC funding is being profitable!
- tempusalaria 3y agoThe majority of public VC backed companies are not profitable and those are the best of the group. Must be 90+% of VC backed companies are unprofitable, and that’s ignoring all the ones that just shut cause they can’t make money
- franciscop 3y agoYes, but the author is making a strong claim that is untrue, that "Companies which receive VC funding are not profitable", specially since from VC economics THOSE VC-backed companies that are profitable are the quintessential part of the equation! BTW that's not even entering on the fact that "profitable" is not even clearly a financial goal for large companies: on one end Amazon has been "unprofitable" for a decade or so but that's BS ofc. On the other end WeWork was unprofitable as well but was highly valued, and that was BS ofc (being highly valued).