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Should Startups Focus on Profitability or Not?

Both Sides of the Table

When they look at buying your company they often think in terms of “how long will it take until I earn back the profits to pay for my acquisition price?” Gross Profit (also called Gross Margin or sometimes “Net Revenue”). ” I saw this first hand with the growth of the “flash sale” category.

Startup 418
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Should Startups Care About Profitability?

Both Sides of the Table

Company 2 might represent an “ad mediation company” where the company gets paid by ad networks for running ads on publisher websites and the company in turn must pay the publisher 85% of the revenue it collects. This is precisely why large Internet categories often produce “winner takes most” outcomes. Not necessarily.

Startup 227
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Tech Titans Peter Thiel, Matt Jacobson, Cameron and Tyler Winklevoss, Mich Mathews, Elon Musk Buy Homes in Los Angeles

SoCal Delicious

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