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Reddit has never turned a profit in nearly 20 years, but it just filed to go public anyway (edition.cnn.com)

submitted 8 months ago by [email protected] to c/[email protected]

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[–] [email protected] 8 points 8 months ago

When has that stopped any tech or fake-tech company from making their IPO?

The IPO is where the Venture Capitalist get their paychecks. Is that or being acquired by some big tech like Google or Microsoft.

The current vc investments can not really be recouped with profits. They exist to make company valuation as big as possible before the IPO, so they can as much money as possible selling as much as the company as they can without losing control of the board.

The company will pump REVENUE just before the IPO to increase valuation, but the PROFIT right now is inconsequential in comparación with the total addressable market. It’s all pure speculation and a terrible way to make a sustainable business, but it’s the best way to get a lot of money for the VC and the founders.