HN Explorer

Ask HN: Why do we praise companies who raise capital?

4 points by phankinson ↗ HN
I've seen so many stories on here recently of company X raising $Y in capital. People are instantly blown away and think that the company is instantly valuable. Why do we praise companies who only raise money but have no clear business model or are extremely unprofitable?

4 comments

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Stronico
Because the math is simple.
benologist
Because they're following the dream of many people here .... start a company, raise money, turn it into something awesome.
n00kie
Because we're so superficial and envy "success theatre". People around you don't really care about your profitability/business model. They just assume that you have figured everything out (otherwise why would anyone invest?! lol)
mapster
It's a measure of business confidence and success - but, as you know, has no bearing on future success and profitability of the company.