V1 is not even remotely profitable
I think that giving an ex-ante suggestion that the first version of a product should not be profitable leads many founders to believing there is no way to move forward but through very large cash injections.
I am a strong believer that by focusing on a frugal innovation cycle, and by leveraging opportunities (mostly funding that goes into making a profitable V1) it is possible to kickstart a profitable business from the get go (or almost).
Established companies can sink capital in developing new, "revolutionary" products, while startups basically don't have it. Either you focus on working à la Facebook or Uber, spending money like crazy hoping for a future where you'll break-even, or you focus on profitability early on and lower the dilution of your company.
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