4 ms·
not making money is bad for startups.
by thejosh 13y ago
not making money is bad for startups.
- ACow_Adonis 13y agoI don't know about that. It seems to have worked out all right for twitter :P
- rabino 13y agoNot really. YouTube and Instagram, for example, had insane exits while loosing money.
- davidu 13y agoThere's no factual evidence to back this statement up. See my other comment on this thread.
- thejosh 13y agoWhat? Not making money isn't a bad thing for startups? I must be really out of the loop, I didn't realise startups run on Unicorn smiles and jellybeans.
- davidu 13y agoMany run on capital raised from investors until which point they reach a liquidity event that exists irrespective of making money. Some also make money. But VC-backed startups, which is really the only connotation of startup that we use here on YC, are a special breed of startup (generally focused on massive growth) where operating capital derived from revenue is not a pre-requisite for success.
- ojbyrne 13y agoNot making revenue is bad for startups. Once you have investment on board, the model is "grow the top line and we'll worry about the bottom line later." That is how venture capital works. Twitter's revenue so far in 2013 is $422 million [1]. [1] http://www.itworldcanada.com/post/twitter-loses-growing-sec-filling http://www.itworldcanada.com/post/twitter-loses-growing-sec-...