For years, the startup model has been based on raising capital, growing quickly, and neglecting short-term profits to gain more market share. That strategy allowed businesses to build scale, but also resulted in high cash burn, poor unit economics, and strong reliance on subsequent funding rounds.
But in a more selective investment climate today, startup profitability has moved from nice-to-have to something investors actively screen for, and founders who ignore that shift are finding it harder to raise.
