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.