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inglor | 10 months ago
My current startup is also not profitable, we're burning money but we're already signing big contracts and I hope in a year or two we keep growing rather than become profitable (1B+ valuation in a year).
Becoming profitable, even at this point is just a matter of deciding to stop expanding - but neither us nor our investors want this given there is so much potential for growth and more revenue streams on the line.
this is ycombinator's news aggregators, I suspect you're not going to get a "don't take risks and build things" vibe - it's a startup accelerator after all :).
troupo|10 months ago
They are either profitable or acquired :)
> Becoming profitable, even at this point is just a matter of deciding to stop expanding
Yeah, growth at all costs is one of the defining factors.
> it's a startup accelerator after al
The only business models for Y Combinator startups are:
- run indefinitely long on unlimited investor money
- get sold to the highest bidder at some nebulous market valuation
Becoming profitable never enters the picture :)
sebastiennight|10 months ago
Why? Once a company has been acquired, does it automatically fall out of profitability?
If it's acquired in a stock sale, it remains an independent entity and still has a P&L
If it's acquired/merged in an asset sale (not usually a good sign), it can still be assessed whether the new division is profitable - except in some rare cases like Google (allegedly!) not wanting to itemize some of their divisions to avoid too much regulatory scrutiny on monopoly positions.
> Becoming profitable never enters the picture :)
Seems very wrong based on looking at YC's portfolio, which apparently includes a bunch of profitable startups