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by mason55 2595 days ago
Why? Why should public markets be the red line?

If you’re not profitable yet then that means there’s lots of room for growth. If companies are going public when there’s still all that room for growth then it means the public gets to share more in the growth.
2 comments
tptacek 2595 days ago
I assume the subtext is: because reliable, growing profits are hard to fake, and there's a broad suspicion that a lot of big tech companies are essentially "fake it 'til you make it" counterfeit businesses.

I think it's a critique that makes sense for some kinds of tech companies and not for others.

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rossdavidh 2594 days ago
"If you’re not profitable yet then that means there’s lots of room for growth..." Well, it _could_ mean that, or it could simply mean your business will never be profitable. In fact, of all the companies which are not profitable, easily the majority are ones that never will be (although, sure, some will).
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