As an investor, how do you decide whether to fund a hot Web company that’s growing rapidly, but isn’t making money?
Just because Facebook Inc. and Twitter Inc. have gotten away with adding users first and revenue later doesn’t mean that every start-up can do the same.
IVP General Partner Steve Harrick, whose firm invested in Twitter two years ago at a valuation that was reported to be between $200 million and $250 million, called Twitter “a notable exception” to the types of companies that IVP usually invests in – later-stage companies with revenue of over $20 million.
To read the full, original article click on this link: Beware Of Fast-Growing Web Companies With No Revenue - Venture Capital Dispatch - WSJ
Author: Deborah Gage
