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When choosing between immediate profitability or faster growth, the smart decision is typically faster growth, as that leads to much greater profits down the ro
by paul 11y ago
When choosing between immediate profitability or faster growth, the smart decision is typically faster growth, as that leads to much greater profits down the road.
Remember when the HN crowd thought that Facebook could never be profitable because they were making the same tradeoff?
- ThomPete 11y agoFacebook is one example. Not exactly enough to establish a new approach to business making.
- napoleond 11y agoWhen discussing multi-billion dollar web startups in the consumer space, there are only so many examples to draw from.
- hueving 11y agoMulti billion dollar startups are so rare that trying to mimic them is a fools errand. It's the same logic from people that say, "Bill Gates dropped out of college, and look how rich he is!"
- ThomPete 11y agoYes and Facebook is probably one of the only of those who started with growth rather than looking for profit that has in fact become profitable. But they still haven't managed to make the amount of money back that was invested in them.
- dkyc 11y agoAccording to CrunchBase, facebook has raised roughly $2.1B totally (including their IPO, which accounted for $1.5B of that). [0] In 2014, facebook totalled roughly $3B net income [1]. So they made dramatically more money back in the last year than they raised totally and will probably continue to do so. [0] https://www.crunchbase.com/organization/facebook/funding-rounds https://www.crunchbase.com/organization/facebook/funding-rou... [1] http://investor.fb.com/secfiling.cfm?filingID=1326801-14-7&CIK=1326801 http://investor.fb.com/secfiling.cfm?filingID=1326801-14-7&C...