What’s the best way to think about profitability?

Fred Wilson (Co-Founder and Partner at Union Square Ventures)
Profitless Prosperity – AVC

Profits are critical to the health of a business, but that doesn’t mean a healthy business has to currently profitable. It needs to be able to be profitable if it wants to be and it needs to be profitable at some point in the future, at least hypothetically. So when you read that a company is losing money, don’t read that as a bad thing. It could be a very good thing. It all depends on why.