> You confess that you as a founder were still not able to make the company profitable with the resources you currently had. You’re bleeding money, and you need more.
For a lot of companies this is true, but tons of business models require economies of scale to be profitable and there's nothing wrong with that. It's not a failure to say that a company can't be profitable at a small scale.
The real issues are the plethora of companies where the unit economics will never make sense regardless of scale. Painting VC money with such a large brush is unhelpful.
> VC Funding Means You Will Sell Your Company
I think this is the more serious critique. Your VC investor wants you to make an exit, either through IPO or acquisition. This is the VC business model. A steadily growing profitable business will almost never provide the kind of return neccesary to compensate the risk of a VC firm.
For a lot of companies this is true, but tons of business models require economies of scale to be profitable and there's nothing wrong with that. It's not a failure to say that a company can't be profitable at a small scale.
The real issues are the plethora of companies where the unit economics will never make sense regardless of scale. Painting VC money with such a large brush is unhelpful.
> VC Funding Means You Will Sell Your Company
I think this is the more serious critique. Your VC investor wants you to make an exit, either through IPO or acquisition. This is the VC business model. A steadily growing profitable business will almost never provide the kind of return neccesary to compensate the risk of a VC firm.
If that's something you're okay with, great.