Raising money is one of the hardest things an executive will ever have to do. For the founder of a startup, raising money can feel like the only job. For the first few years, the most important thing you will do is raise money to keep the company afloat.
Counterintuitively, profitability is not the goal of a startup. Unloading it for hundreds of millions is the target. Sure, VCs want to see profits. But they are far more interested in a company’s potential to make a profit down the road. Amazon is the darling of tech investors because of potential profit, not current profits. [Read more…]