I get not having profit. I get not having income, if it’s in some prototype phase. But having no plan or idea whatsoever for how to monetize and still getting VC? Wild.
It’s called “growth-first” or “growth-at-all-costs” strategy. I don’t recall what video I was watching when I learned it, but it’s a dying strategy for business now (IIRC). It had its rise in popularity in the late 2000s to about 2018. Think Netflix, WeWork, Uber, etc. These are huge businesses to prop up, so they (literally) bank on the idea that with a huge user base, they can sooner or later, make a profit to make it worth all of the risk.
It’s called “growth-first” or “growth-at-all-costs” strategy. I don’t recall what video I was watching when I learned it, but it’s a dying strategy for business now (IIRC). It had its rise in popularity in the late 2000s to about 2018. Think Netflix, WeWork, Uber, etc. These are huge businesses to prop up, so they (literally) bank on the idea that with a huge user base, they can sooner or later, make a profit to make it worth all of the risk.