Its all about the future. If the startup has great potential it doesn't matter how much money or traction it made. The acquiring company only has to want someth

Its all about the future. If the startup has great potential it doesn't matter how much money or traction it made. The acquiring company only has to want something about that startup that it thinks will help in the future. Also pretty sure Amazon went 6+ years at a loss. That was a no brainer for investing in them even though they weren't making a profit.