For startups, growth is important. Yet everyone downplays the true indicator of a company's value: cash flow.
It makes sense, given that VCs are often betting on big buyouts. This is the "castle in the air" theory. At some point, I think the pendulum will shift into investing in companies, that while they may not have cashflow here and now, at least have the potential to generate cash.
It makes sense, given that VCs are often betting on big buyouts. This is the "castle in the air" theory. At some point, I think the pendulum will shift into investing in companies, that while they may not have cashflow here and now, at least have the potential to generate cash.