Why do Startups Lose Money?
No startup or investor wants to lose money, but it seems that startups focusing on growth do lose money initially.
It’s fine as long as there is a path to profitability.
Choosing not to be profitable in favor of growth is now a strategy as long as large profits can be anticipated in the future.
This can be seen in US tech companies like Amazon and Meta, who burnt investors’ money in the initial days but now make billions of dollars in profit every year.
Same will be seen in Indian startups few years down the line as they mature and take control of their respective markets.
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