Will Focusing on Profitability Hurt You With Growth VCs

Founders - will focusing on profitability actually hurt you with VCs?

Love starting the week with a little spice.

Saw this tweet (xeet? no one says that right?) from the inimitable Jenny Fielding and it got my brain whirring.

Of course the mandate of the day is for all venture-backed businesses to rein in costs and move towards positive unit economics swiftly. But if that track change reduces growth, will the investors you want in the next round even be interested?

And sure - if you can build a profitable business without any further investment, no sweat. But most founders taking VC (I hope) were aiming to build billion+ companies. That sort of scale is very rarely achievable without infusions of outside cash.

So the founder is left in this conundrum.

In the end, venture is almost always about growth. Growth solves almost every problem, even in a moment where growth is less heralded.

If you want more from Jenny, 𝗷𝗼𝗶𝗻 𝘂𝘀 𝗶𝗻 𝟭 𝗵𝗼𝘂𝗿 as we go through the relevant data from Q3 and do some speculating about how the end of the year will shape up.

Topics we will tackle include:

• Entry prices at seed-stage

• Repeat founders vs first-time founders in the market

• Shutdowns, down rounds, and recaps

• M&A

• Raising VC funds today

I learn from Jenny most days online - super excited to have the chance to quiz her live! Link to register in the comments below.

#cartadata #venturecapital #founders #profitability #growth #startups