A company that exists just to take investment and then use that investment to find more investment isn’t actually a tech start-up. It’s a pyramid scheme.
There Are Literally Only 2 Ways For Your Business To Make Money.
Jon Westenberg

Logically and very often yes.. But with each level of funding if your user base is multiplying exponentially, then this is the big gorilla strategy. Becoming the biggest and meanest gorilla will discourage any one else from even considering entering your territory. And also do keep in mind, as you have more users the odds of becoming profitable or generating a revenue also is higher.

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