VC: Startups aren't supposed to make money — profits should fund growth
AccBalanced · x · 2026-10-25
Investor michuk restates the VC logic: once a startup takes venture money, its job is to grow fast and maximize the odds of returning a multiple to investors, not to generate profit — a portfolio company sitting on cash actually annoys him. Fully-owned companies can do whatever they like with profits, but dividends only become acceptable long after an IPO. "Profit isn't the goal, it's what's left when you've run out of better places to put the money."
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