[Retric]

The general assumption by their investors was they had a path to profitability. Critically they don’t need to convince most investors just enough to keep going.

If you really want to understand VC’s from a finance perspective it comes down to trying to value intangible assets. Having ongoing customer relationships is inherently valuable. Lyft could for example sell their customers email address to scammers, but the goal is to leverage those relationships more sustainably thus extracting vastly more money.

For a rapidly growing unprofitable company it really just becomes a question is the long term value of those intangible assets (software, customers, patents etc) worth more than the current burn rate. If it is then you have a profitable investment in a company that will eventually become profitable or get bought out by someone else.