Interesting that Atlanta investors set a benchmark of profitability as a benchmark to trigger an investment. Seems very short sighted in that all of the big deals recently have been due to market share, category domination and scale versus profitability. Services businesses it makes sense but AdTech this is a very limited and short sighted metric. Think Exact Target, Buddy Media, Vitrue and also many super hot public companies - SalesForce. So, is profitability and key trigger or a red flag that multiples are declining? I personally like to see conviction, investment and differentiation in the early years versus a focus on profits. Plus, profits are taxed and by investing back you are making your equity work for you and the economy vs the government.
Posted on: Mon, 17 Jun 2013 07:00:20 +0000
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