[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.