There are a lot of forwards going around on the P&L Statements of Startups and the losses they are making. 🤷

It makes very little sense to gauge a startup on their yearly P&L statement. That is a trading/services industry mentality.

Think of a startup like raising a child. If you take even the smartest of children and look at the first 12 years of their education, it will look like they are net net only taking and not contributing back (If they do, it involves child labour :p).

The goal of a startup is to build an asset. Building assets are hard, but once built, they return money over and over and over and over - Just as a child’s education + 4 years of college, then pays for the rest of their life.

The valuation depends on the trajectory of where the investors believe the child will grow up to be. Mature companies (like the ones in public markets) are like grown-up adults. If you are 30 and are still haven’t gotten a job, one might be valued less there. But startups are very early in the path to assess with yearly P&Ls.

I would highly recommend that you stop following reading such gossips that "startup Media companies" publish.

Also remember, B2C is very very hard in India (compared to B2B or B2B2C), especially with how low our Per Capita GDP is. So essentially most of the players are “investing” now, assuming that the 5trillion$ economy plan is real, in the near future, when it will pay rich dividends.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
The Startup Guy

The Startup Guy

The Startup Guy. An Entrepreneur of Entrepreneurs, building a Startup of Startups. I focus on building People - Products & Startups follow.