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VC-funded companies are unprofitable by design. You build something very novel and then you spend a lot of time figuring out how it should work and growing it.
by ymolodtsov 3y ago
VC-funded companies are unprofitable by design. You build something very novel and then you spend a lot of time figuring out how it should work and growing it. Amazon, Google, Microsoft – all raised venture funding because that's what they were doing.
Still, many of those companies try to become cashflow positive (especially right now). Which means they earn more than they spent, but they invest a lot in their expansion (and as soon as they stop it they could show instant profit).
Ultimately, a very small share of companies ever raise VC funding.
It's completely OK to bootstrap your project, focus on the revenue and profitability from day one. But it's also difficult, especially you're building some kind of a SaaS product in a competitive space. Not everyone can be Basecamp (which started a long time ago and built an enormous marketing operation to get "free" leads).