If they were making money hand over fist, they would likely just change the policy. Or at least if somebody would acquire them.
Apparently their VC investors were not seeing the hockey stick growth, so they decided to cut the losses. Taking VC money is a more risky bet than other forms of investment. If your business is profitable, but small and is growing 5-7% a year, and no acquisition is sight, most likely it's going to be shut down.
Exactly. It could have been a bootstrapped business possibly, maybe with traditional loans for business growth.
But if you take the rocket fuel of VC financing, you either accelerate so fast as to reach the orbit, or you crash back to earth. There's no glider option then.
If they were making money hand over fist, they would likely just change the policy. Or at least if somebody would acquire them.
Apparently their VC investors were not seeing the hockey stick growth, so they decided to cut the losses. Taking VC money is a more risky bet than other forms of investment. If your business is profitable, but small and is growing 5-7% a year, and no acquisition is sight, most likely it's going to be shut down.
Only growing 5-7% a year *after taking millions in investment.
Exactly. It could have been a bootstrapped business possibly, maybe with traditional loans for business growth.
But if you take the rocket fuel of VC financing, you either accelerate so fast as to reach the orbit, or you crash back to earth. There's no glider option then.