Fred Wilson, on Profits vs. Growth:
But I’m a bit sick and tired of the objective of every operating plan I see is to get the business to a point where it can raise money at a much higher price. That’s nice and it’s how the VC/startup game is played. But at some point I’d prefer to see an operating plan that has the objective of getting to sustainable profitability. And I do mean sustainable.
Even for those that want the regular VC/startup game to continue as is, at some point you need more giants like Google and Apple to rise up. Other wise you’ll eventually run out of large companies interested in buying the startups VCs invest in.
2 replies on “Sustainable”
Also, even more important than having big cos buying one another, we need diversity. Like any ecosystem, the resilience, the growth of the tech industry is directly related to its diversity of people, culture, techniques… etc.
I suspect many VCs are much more concerned with generating more money than with overall diversity ( at least the ones that talked up pattern matching for successful startups ).