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Why Companies With No Revenue Get Valued At Billions Of Dollars

If there’s one thing that vexes people, it’s when hot, growing startups fail to generate revenue.

It’s somehow seen as a sign of failure if a company isn’t making money on day one. Twitter was dogged by the revenue question for years. Today it’s doing billions in sales, and it’s publicly traded at a ~$38 billion valuation. Same with Facebook, which faced the revenue question. It’s making plenty of money.

via Why Companies With No Revenue Get Valued At Billions Of Dollars – Business Insider.

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