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This is how I understand business, being a small scale kind of guy. But how does it align with the prevalent business model of supercharging growth with capital
by nicbou 3y ago
This is how I understand business, being a small scale kind of guy. But how does it align with the prevalent business model of supercharging growth with capital?
These companies are unprofitable and not default alive, but if you can keep pumping them until they become profitable, they survive.
- taneq 3y agoIt doesn’t, because “venture capital backed hyper growth startup” isn’t a business model, it’s a pyramid scheme. The survival of the business after IPO is irrelevant.
- monissiddiqui 3y agoIncrease value for the shareholders taken to it's logical extreme. Just gotta increase the perceived value to the potential bagholders so the current bagholders can wipe themselves clean.
- WJW 3y agoMaybe for the investors who (intend to) sell all of their stock in the IPO, but surely a founder/CEO has both emotional and financial reasons to ensure the continued survival of the company?