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by Tichy 5092 days ago
How so?
2 comments

What fauldsh said, basically.

Imagine that you've got a bunch of VCs who have decided to give you millions and millions. Yay money. You now have a surplus, but you have not grown. To grow, you have to spend that money. That's the entire reason they gave you money. Goodbye surplus.

Because any surplus saved for the bad years is money that could have been invested in further growth.