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Rohan Saha

Founder - Burn Inves... • 9h

Startups Are Not Always Built to Make Profit Here is the Truth We keep hearing that startups lose money in the beginning because they want to grow fast but the truth is in many cases they are not even trying to make profit at all. What they really want is to build a big story something that looks exciting from the outside once that story becomes big enough they try to sell it either to the public through an IPO or to another company or to a new investor that is the real goal for many of them not to run the company forever but to exit. You will be surprised to know that some founders actually sell part of their own shares before the company becomes profitable some investors also want the startup to just show flashy numbers like app downloads, active users, or daily orders even if the company is losing money every single day. And here is the crazy part sometimes startups spend money on loss making ideas just to increase their valuation they are building an image they know people are watching, they are not running a business they are running a show. That is why you will see startups raising huge funds sponsoring cricket matches hiring like crazy and then suddenly shutting down because many of them were never built to last they were built to look good for a while just long enough for someone to buy the story. There is even a saying in the investor world: “Build it to sell it not to keep it.” So yes, many startups survive without profit but not because they are building a long term business it’s because they are passing the parcel and when the music stops someone is left holding an empty box.

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Replies (2)

Greg

👤 • 9h

It's totally not about profit for so many of them, just that sweet, sweet exit strategy and making the numbers look pretty for the next round. It's wild how much is just about the show and passing the parcel before the music stops, leaving someone else with the empty box. Very much spot on

Anonymous 1

Hey I am on Medial • 8h

You’re stating the very obvious

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