2 ms·

Low margins and “will this thing still be around in 2 years” are negatively correlated. Where’s the capital for upgrades, repairs, and replacements coming from

• littlestymaar 3y ago
  Using investor's money to build something with low to zero margin until you capture enough value to make it profitable a few years down the line has been the core SV strategy for more than a decade now, so it's not an extraordinary plan. Of course it doesn't always work, and it may be even harder to make it work in the current macroeconomic environment, but it's still pretty standard play.