{"id":15144,"date":"2019-09-21T07:57:29","date_gmt":"2019-09-21T07:57:29","guid":{"rendered":"https:\/\/www.icebreakerexecutive.com\/?p=15144"},"modified":"2019-09-21T07:57:29","modified_gmt":"2019-09-21T07:57:29","slug":"the-cool-norm-mantra-that-its-ok-for-startups-to-lose-money","status":"publish","type":"post","link":"https:\/\/winningthinking.co.uk\/?p=15144","title":{"rendered":"the cool norm\/mantra that &#8220;it&#8217;s OK for startups to lose money"},"content":{"rendered":"<p><span id=\"ember5222\" class=\"ember-view\">It&#8217;s worth challenging the cool norm\/mantra that &#8220;it&#8217;s OK for startups to lose money&#8230;&#8221; If a business&#8217;s financial model is broken scaling it does not fix the P&amp;L &#8220;WeWork will never ever, in its short history, generate a profit, let alone the tens of billions in revenues necessary to generate anywhere near the $3 billion in earnings required to (even then generously) value the company at \u00a347 billion.&#8221; It&#8217;s not unusual for sensible investors and management teams such as Softbank to get duped by these mantras, but it does require a different skill set to resolve this. This is our comfort zone <\/span><a id=\"ember5226\" class=\"feed-shared-text-view__hyperlink ember-view\" href=\"https:\/\/www.winningthinking.uk\/\" target=\"_blank\" rel=\"noopener noreferrer\">www.winningthinking.uk<\/a><span id=\"ember5230\" class=\"ember-view\"> highlights these flaws and gives the team the tools to avoid these scenarios ever taking root essential at due diligence, post-investment and during portfolio management to exit. I dont think Softbank can afford to lose their $20bn?\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p>https:\/\/medium.com\/@henry.hawksberry\/is-we-work-a-fraud-5b78987d3e61<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It&#8217;s worth challenging the cool norm\/mantra that &#8220;it&#8217;s OK for  [&#8230;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-15144","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/winningthinking.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/15144","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/winningthinking.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/winningthinking.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/winningthinking.co.uk\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/winningthinking.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15144"}],"version-history":[{"count":0,"href":"https:\/\/winningthinking.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/15144\/revisions"}],"wp:attachment":[{"href":"https:\/\/winningthinking.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/winningthinking.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/winningthinking.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}