Why Is There Such an Insatiable Appetite to Invest in Unprofitable Companies?
Revenue is vanity; profit is sanity. It’s fundamental, the raison d’être, the very purpose of running a business: profit. But you don’t need to look very far to see companies securing massive investments while losing billions. Some are even raising further investment despite previous rounds yet to bear any returns. So why is there such an insatiable appetite to invest in unprofitable companies? Misdirection metrics Companies that have a massive user base/revenue/other impressive sounding metric,
Revenue is vanity; profit is sanity. It’s fundamental, the raison d’être, the very purpose of running a business: profit. But you don’t need to look very far to see companies securing massive investments while losing billions. Some are even raising further investment despite previous rounds yet to bear any returns. So why is there such an insatiable appetite to invest in unprofitable companies? Misdirection metrics Companies that have a massive user base/revenue/other impressive sounding metric,
Read in Entrepreneur: https://apple.news/ARFJx6dt8ROy17hnOrG1ntQ
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