There is some value to revenue though; it represents traction in generating money. It's a step on the road. It's past idea, and getting customers. It's not profit, yet, but it's something.
A lack of revenue means nobody is paying for your service or products, period, which is very troubling. In the first big bubble, there were a lot of companies that sold at huge valuations while having no or negligible revenue.
It's one thing to be in the process of monetizing, another to have your monetization plan as "advertising(?)"
From my point of view, you get an idea first, customers second, revenues third, and profits fourth. Only once you have profits is your business really successful. To command large valuations without even generating revenue... that seems crazy to me.
Because you haven't proved that anybody will pay for what you're selling.
If you have revenue, but not profit, that means people will pay (either for advertising or the software)... which is a very promising start. All you "need to do" from there is increase their number... at least with software, where making more is essentially free.
A lack of revenue means nobody is paying for your service or products, period, which is very troubling. In the first big bubble, there were a lot of companies that sold at huge valuations while having no or negligible revenue.
It's one thing to be in the process of monetizing, another to have your monetization plan as "advertising(?)"
From my point of view, you get an idea first, customers second, revenues third, and profits fourth. Only once you have profits is your business really successful. To command large valuations without even generating revenue... that seems crazy to me.
Because you haven't proved that anybody will pay for what you're selling.
If you have revenue, but not profit, that means people will pay (either for advertising or the software)... which is a very promising start. All you "need to do" from there is increase their number... at least with software, where making more is essentially free.