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Should Startups Focus on Profitability or Not?

Both Sides of the Table

I find it amusing when a journalist writes an article about a prominent startup (either privately held or preparing for an IPO) and decries that, “They’re not even profitable!” The most obvious way to explain this is with sales people. Gross Profit (also called Gross Margin or sometimes “Net Revenue”).

Startup 418
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Playing the Long Game in Venture Capital

Both Sides of the Table

It has historically been the case that VCs would rather fund the promise of 100x in a company with almost no revenue than the reality of a company growing at 50% but doing $20+ million in sales. Our goal is to produce a $10 billion+ winner and remain the market leader in this SaaS category of AI in Sales & Marketing.

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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

To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com. Order a reprint of this article now. A version of this article appeared October 5, 2012, on page M1 in the U.S. Community Home Loans: FOR SALE.