>Every company at this stage loses money
The company is ten years old. I would have to imagine almost zero companies lose money ten years in because they literally do not exist anymore.
The company is ten years old. I would have to imagine almost zero companies lose money ten years in because they literally do not exist anymore.
Palantir is a dumb shitty company that will file for bankruptcy. Unfortunately the VCs have already dumped it on to the dopes on Wall Street bets.
Current Palantir Technologies Probability Of Bankruptcy = 24%
I think VC funding makes IPOs a bit more confusing. It makes sense to IPO, if you need to money to boost your business. Duolingo needs money to update their app, so they can use the IPO to fund it.
The problem is that if you’re VC funded it now looks like the VCs have lost faith in the company. They paid for the bill for ten years and now they won’t help push the company into profitability? That makes an IPO look like an exist strategy.
Every IPO is an exit strategy or a refusal to run a balanced budget. If you have cash flow you can invest for free and compound the growth internally. If you have responsible financial management you can tap the bond markets for basically free.
VC's want a 10 bagger - they have had it and more - is Duolingo going to be valued at $65B in a couple of years? I doubt it.