Stop raising money. Each time you do that you increase the pressure on the site to make more money to earn the valuation. If the company is valued at $6B today then it probably needs to get to at least $18B valuation in two years. How? By trying to extract even more money from the users.
I couldn't agree more. We need to build companies that are sustainable and stable, it's almost as if its a lost concept - What's wrong with a profitable company with no growth? Most companies shoot themselves in the foot and die while growing. Hey, I guess its like a forest - a tree falls down and small seedlings take up the space. Ah, the endless cycle of human struggle.
Got me thinking: isn’t one of the core premises of investing that you’re purchasing ownership of cash flow? Is the ideal company one that it’s never profitable because it so perfectly allocated its money to never return a dime, but always to reinvest in itself? There’s a time and a place for re investment, but returning profit to investors is marginalized these days.
Apple probably doesn’t have a money problem, the culture does. Startups don’t sell growth except secondarily, they sell profit.