Post on Medial

Are you inshorts founder? 😛

Bro the thing is if they are facing loss since a decade in market building startup then it's justified but if they're copying others and are doing similar stuff in existing market and still facing huge losses since long time then it's stupidity.

Most of the companies burn money inorder to capture the market.Once they are able to expand then they focus on making profit.

The problem is not loss. But the way we consider a startup successfull is just by looking at funding and valuation. A solid business fundamental is important and then only you will eventually make profit either today or in upcoming future. Look at the short video streaming plateform which arrives after Tiktok. Aftet two year almost every one of them are either have pivoted or have been strugling to survive. So if you think they will get success after burning money its not going to be case because they forget the basic fundamental of business. They did not have any business model when they were growing .

Bro, you should not be tell this to everyone 😂. the people who don't understand things because of their lack of ability to research are not going to agree anyways. They will just preach with the half knowledge they have. So chill

Startups often prioritize growth and market penetration, leading to initial losses, as demonstrated by successful companies like Reddit, Facebook, and Amazon before achieving profitability.

And who told you that Reddit, facebook and Amazon did went through losses (especially the amounts today's startups are loosing) to become successful 😄

But there some founders who keep burning and there's no profitability in near sight eg- sharechat.

Only if people understood how cash burn and eventual profitability burns. in most cases these startups generate huge profits once they start revving profit engines.

General public reads generalised statements and keeps dancing on it. It will take time to understand startups for Indian masses.

So true, there are about 1000 things going on a founders mind, when it comes to these giants they were fortunate to come up in a developed country like US, I bet unki bhi pant geeli ho jaati yaha start karte toh. Profitably chalne ke liye it takes time, on an avg for tech companies 10-15years, but jis country mei per capita income avg is lower than 2000$ waha 10-15 years sustain karne ke liye you need a lot of good friends in the industry and almost you’d have to keep planning for the survival every two years. And humne dekha hi hai idhar bhi, how people get more engagement when its about some startup falling down, this hyperlocal jealousy plays a huge role in our lives like kunal shah says. We, each other are against ourselves only when things go wrong, look at byjus, rather than thinking about saving the biggest edtech in the world built in india, we laughed until its value came down to mere millions. (Other factors too) but yeah.

You're absolutely right! Zoho did same. I agree with you, not every loss making company is stupid. They are just techniques ..they have various other source of revenue. But I think people need to understand, everyone cannot do same and burn money...until and unless you don't have proper strategies to recover the loss. There should br proper Rnd before burning money, otherwise your startup can close. Only do this , if you're sure you'll be able to capture marker soon then earn money. Don't just start burning money with no plans..if you do so, then you'll be stupid.