Why Do Investors Keep Funding Unprofitable Startups?

Joseph Rauch
Sep 24, 2019 · 6 min read
person holding smartphone with Amazon stock graph
photo credit to: @Austindistel https://www.instagram.com/austindistel/ Photographer: @breeandstephen https://www.instagram.com/breeandstephen/

When I got my start in the startup world, I thought success meant becoming profitable in around five to seven years, preferably sooner. It was an assumption, and you know what they say about assumptions.

To be fair to me — and I love being fair to myself — the vast majority of venture-backed companies in my space were experiencing this lifecycle. First there was the seed…