how do tech start-ups make profits / get funding if they lose so much money every year?
Primarily talking about the Uber and Uber-like companies. Why do investors invest if theyre losing so much money?
>how do tech start-ups make profits / get funding if they lose so much money every year?
If a company is losing money in a year, they are not also making a profit.
>Why do investors invest if theyre losing so much money?
Investors invest for future profits and cash flow. If a company with a product that will become a cash cow 10 years from now has negative profits now, those negative profits are forgivable.
Look into discounted cash flow models if you're interested in learning more about this.
>>1825874
>Why do investors invest if theyre losing so much money?
Most of them aren't so stupid as to put all their eggs in one basket. Usually VC is done by very wealthy individuals or institutions which place bets on dozens or even hundreds of startups in the hope that one will become the next google. Additionally, one doesn't need to hold out until the startup makes money, only until it gets acquired by another company.