Jason M. LemkinCEO, SaaStr · Co-Founder of SaaStr AI, SaaStr Fund, Adobe Sign

The Hidden Allure of Profitability: The Key to Investment Growth

1 Oct 2023 · 0 min

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0:20

A YouTube conversation (recorded Oct 1, 2023) led by Jason M. Lemkin about the trade-offs and investor preferences between profitability and growth. The speaker argues that profitability has become fashionable and that founders sometimes receive advice implying lower growth is preferable if profitable; however, panelists emphasize investors still value growth and now often want a combination—'efficient growth'—meaning both profitability and healthy growth metrics.

But I think. And then just where I think founders maybe get bad advice on the Internet is that profitability is so in fashion that somehow lower growth is better. That like now if you're at 2 million, growing 40% but profitable, that that's. It doesn't make it an attractive investment in this climate, does it?
It's still hard because you have to.
Have both now more of a full package.
Totally. It's not like don't worry about growth. That is bad advice. Growth is still very important.
Yeah, there's extreme. So anyhow, that's just where I think profitability. People just want efficient growth today.