Wall Street is becoming accepting of unprofitable startups, and investors are now willing to tolerate negative cash flows for long periods of time.
Many of the world's most valuable tech startups have never been profitable, raising billions of dollars from investors while still losing money every year. Tech startups typically focus on rapid growth in their early years, burning through investor cash in order to expand. Massive brands like Uber, Snapchat, and Spotify are among those that have yet to make a profit.
Many of the world's most valuable tech startups have never been profitable, raising billions of dollars from investors while still losing money every year. Tech startups typically focus on rapid growth in their early years, burning through investor cash in order to expand. Massive brands like Uber, Snapchat, and Spotify are among those that have yet to make a profit.
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