There are actually many opinions to this. Another supplementary reading to this has been covered by Mark Suster: http://www.bothsidesofthetable.com/2011/12/27/

There are actually many opinions to this. Another supplementary reading to this has been covered by Mark Suster: http://www.bothsidesofthetable.com/2011/12/27/should-startups-focus-on-profitability-or-not/ http://www.bothsidesofthetable.com/2011/12/27/should-startup... In that article, Mark Suster cover a counter example where instead of pushing to become profitable when revenue is almost overtaking cost, companies that are in a fast growing market should consider forsaking profit today for higher growth tomorrow. Obviously, that depends entirely on the investment climate.