💸Traditional goal of maximizing profit for shareholders is being replaced by a focus on growth at any cost
📉Investors have been willing to tolerate huge losses for extended periods of time
📈Recent decrease in funding indicates a shift in investor sentiment
💡Late stage startups with chronic money burning problems are the most affected
💰Some startups are successfully reducing losses and becoming profitable, while others are struggling
What is the traditional goal for companies?
—The traditional goal for companies is to maximize profit for shareholders.
Why have investors been willing to tolerate losses from startups?
—Investors have been willing to tolerate losses from startups because they believe in the potential for high growth, which could lead to large returns in the future.
What does the recent decrease in funding indicate?
—The recent decrease in funding indicates a shift in investor sentiment, with less willingness to fund startups that are not profitable.
Which startups are the most affected by the funding cut?
—Late stage startups with chronic money burning problems are the most affected by the funding cut.
Are all startups able to reduce losses and become profitable?
—No, not all startups are able to reduce losses and become profitable. Some are finding it difficult to achieve profitability.
00:00Traditionally, companies aimed to maximize profit for shareholders.
01:02Funding has decreased significantly, signaling a change in investor sentiment.
02:26Late stage startups with chronic money burning problems are the most affected by the funding cut.
05:50Some startups are successfully reducing losses and becoming profitable, while others are struggling to do so.
10:29The current funding cut may lead to a large number of startups facing bankruptcy or acquisition by larger companies at low valuations.
