Negative margins works until you have a competitor with a great product + a profitable business model.
Positive margins means growth funds more growth. And you can outspend your competitors on CAC.
Same reason why CARR is really MRR not ARR, and ARR is more valuable than MRR
Negative margins works until you have a competitor with a great product + a profitable business model.
Positive margins means growth funds more growth. And you can outspend your competitors on CAC.
Same reason why CARR is really MRR not ARR, and ARR is more valuable than MRR
As long as you keep making things that people want, moats can be built over time
Just a year ago, people were calling openai a commodity layer that would be driven to zero
As long as you keep making things that people want, moats can be built over time
Just a year ago, people were calling openai a commodity layer that would be driven to zero
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