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Guess What? In long run profits at Startups do matter…

Showing that hope is a very powerful driver, companies that are unprofitable at IPO outperform those that generate a profit for the first two years. Then reality comes calling and the unprofitable “dogs” head for purgatory while the profitable companies keep trucking higher.

CHART OF THE DAY: What Happens When An Unprofitable Company IPOs?

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