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Modern day startup story: unprofitable and proud of it

  • Analysts assume that a startup will turn around at some point in the future.
  • A staggering 83% of IPOs in the US in the first nine months of 2018 were by loss-making companies.
  • With Uber, analysts continue to forecast that the 10-year-old company will break even in five years.
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Chidambaram
29 May 2019 7 Mins Read 1 comments
Dara Khosrowshahi CEO of Uber talks to traders after the opening bell during his ride sharing companie's IPO, at the New York Stock Exchange on May 10, 2019 located at Wall Street in New York City. Getty Images
Dara Khosrowshahi CEO of Uber talks to traders after the opening bell during his ride sharing companie's IPO, at the New York Stock Exchange on May 10, 2019 located at Wall Street in New York City.
Sugar, fossil fuel, and Angry Birds — things that are out of favour and fashion. Now, add operating profit to that list. Traditionally, companies have waited to turn profitable before going public. But that is not the norm anymore. A staggering 83% of initial public offerings (IPOs) in the US in the first nine months of 2018 were reportedly
real possibility of a long profitability horizon. “Horizon” literally refers to the point where the sky meets the earth. As you get closer, it keeps moving farther away from you, much like Uber’s profitability. Chidambaram Palaniappan is the founder of Relyo India Ventures, an investment platform for alternate assets and innovative ventures. ( Graphic by Abdul Shafiq)
Sugar, fossil fuel, and Angry Birds — things that are out of favour and fashion. Now, add operating profit to that list. Traditionally, companies have waited to turn profitable before going public. But that is not the norm anymore. A staggering 83% of initial public offerings (IPOs) in the US in the first nine months of 2018 were reportedly real possibility of a long profitability horizon. “Horizon” literally refers to the point where the sky meets the earth. As you get closer, it keeps moving farther away from you, much like Uber’s profitability. Chidambaram Palaniappan is the founder of Relyo India Ventures, an investment platform for alternate assets and innovative ventures. ( Graphic by Abdul Shafiq)

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