Generally, being profitable precludes a company from getting "silly [high] valuations" & buzz in Silicon Valley. Unless they're really, really profitable.
Big valuations usually stem from not knowing how much a company will make once they start charging for stuff. So the "it" crowd works itself into a frenzy and VCs take a big gamble.
But once you make a dollar, all the mystery is gone. You're judged & valued pretty much on your revenue alone. Which is usually low (startups are hard) and unsexy (so not a ton of buzz).
Interesting. So "Lets not risk growth my premature monetization, like ads, which could repel early adopters." is often just an excuse to avoid income and thereby improve valuations?
Big valuations usually stem from not knowing how much a company will make once they start charging for stuff. So the "it" crowd works itself into a frenzy and VCs take a big gamble.
But once you make a dollar, all the mystery is gone. You're judged & valued pretty much on your revenue alone. Which is usually low (startups are hard) and unsexy (so not a ton of buzz).
Not saying a agree with it. But that's how it is.