[CamatHN]

Usually startups, defined roughly as young companies with extremely high growth creating something new, to start off with are running at a negative cash flow to sustain their growth or development and plan to capitalise on the position later.

These companies would struggle to operate with positive cashflows as their products/services and growth hasn't matured to allow for it yet. Perhaps they are building their product and/or are still in the early stages of iterating on their idea. Just because they have a decent business doesn't mean straight away they can consolidate right away on their business in terms of running a profit.

A lot of decent future businesses could die if startups are forced to consolidate. However in instances this may be a wake up call to keep them accountable to the financials of their business.

[aledalgrande]

>> These companies would struggle to operate with positive cashflows as their products/services and growth hasn't matured to allow for it yet.

Then they would have to do like all of us, get creative and find alternative ways of getting cash.