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☁️ VCs look for immediate and extreme growth in their investments, so the profitability of the companies they work with is the least of their concerns. But striving for sky high growth can be costly, and not just in dollars. Dumping loads of capital into marketing makes it nearly impossible to identify your real cost to acquire customers (CAC), and if your CAC remains high over time, you run the risk of never being able to build a sustainable model. There are, however, some notable software businesses who have taken the road less traveled, achieving profitability while also growing to an impressive scale. Both profitable and high burn companies can generate great returns for investors, we would just argue that the profitable ones also create good outcomes for founders!
