They're doing business at a loss— they're doing negative business.
So, okay, maybe they're going to become profitable (in real life) at some time soon in the future and we'll all feel a bit silly. But if that's the case, then why would they be using investment capital to pay off early-stage investors now— when they're just on the brink of profitability, starting an IPO, their value sure to skyrocket? What employee decides to cash out under these circumstances?
So, okay, maybe they're going to become profitable (in real life) at some time soon in the future and we'll all feel a bit silly. But if that's the case, then why would they be using investment capital to pay off early-stage investors now— when they're just on the brink of profitability, starting an IPO, their value sure to skyrocket? What employee decides to cash out under these circumstances?