[yellowboxtenant]

I read Thiel's Zero To One recently and after reading it you can't help but think these kind of critiques are shortsighted. A technology company's worth is often a projection for what their value will be in 20 years. This is why tech startups can be expected to lose money for many years and still be valued highly.

[mathattack]

Exactly - as long as the unit economics (revenue per unit is more than the variable cost to create and sell it) are positive, software companies can grow past their fixed costs. One SaaS companies grow past their fixed costs, they are machines for throwing out cash. People who are too short sighted to see this are better off investing in public equities rather than early ventures. If unit economics don't make sense, then the founders and early investors deserve to lose their money.