this post was submitted on 09 Sep 2025
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The issue isn't the percentage, it's that inverse of growth. Most investors desire growth to see returns on investment for their upfront capital. If growth isn't occurring, that's a good sign to read the room and pull your funding.
Similar issues occurred with streaming services. Netflix is still profitable, but because the userbase isn't growing, investors and the financial world stopped seeing it as a valuable platform to invest in.