Are You Sure We Are Not in a Bubble?

A basic principle in business is that your revenue must cover your costs, and ideally leave some margin for profit. One of the keys of understanding Venture Capital-funded startups is the time-frame. Startups raise money at different stages in exchange for equity, and use that money to build their offering and grow their user base to a point where they can achieve “escape velocity” and start to actually gain profits. Once funding is raised, the goal for investors is that the startup either ge...