Comment by deaux
20 days ago
Completely detached from reality, brainwashed SV VC's who have made dumping the norm in their bubble.
I can guarantee you that 90% of successful businesses in the world made a profit their first year.
20 days ago
Completely detached from reality, brainwashed SV VC's who have made dumping the norm in their bubble.
I can guarantee you that 90% of successful businesses in the world made a profit their first year.
1 year seems aggressive. Successful restaurants have around the first year as the average break even timeline, with the vast majority between 6 and 18 months.
They are making a profit on each sale, but there are fixed costs to running a business.
1 year isn't aggressive because of the modifier "successful". Most businesses that aren't profitable 12 months in go out of business not long after, having remained unsuccessful throughout their lifespan.
Restaurants have comparatively high start up costs and ramp up time. Compare to e.g. a store selling clothes. If for successful restaurants the average time is already a year, then in general for successful businesses it's going to be less.
I’ll bite. Share your data?
Companies that were not profitable in their first year: Microsoft, Google, SpaceX, airBnB, Uber, Apple, FedEx, Amazon.
If the vast majority of companies are immediately profitable, why do we have VC and investment at all? Shouldn’t the founders just start making money right aeay?
> Companies that were not profitable in their first year: Microsoft, Google, SpaceX, airBnB, Uber, Apple, FedEx, Amazon.
US Big Tech, US Big Tech, US Tech-adjacent, US Big Tech, US Big Tech, US Big Tech, FedEx, US Tech-adjacent.
In other words, exactly what I was getting at.
Also, a basic search shows Microsoft to have been profitable first year. I'd be very surprised if they weren't. Apple also seems to have taken less than 2 years. And unsurprisingly, these happen to be the only two among the tech companies you named that launched before 1995.
Check out the Forbes Global 5000. Then go think about the hypothetical Forbes Global 50,000. Is the 50,000th most successful company in the world not successful? Of course not, it's incredibly successful.
> why do we have VC and investment at all
Out of all companies started in 2024 I can guarantee you that <0.01% have received VC investment by now (Feb 2026) and <1% of tech companies did. I'll bet my house on it.