I agree with your assertion that Venture firms pay for a piece of the future value of a company. While that is true, it is also true that the banks you compared Kuda to managed to grow while being profitable. A counter argument could be, so why isn't Kuda trying to do the same to some extent. I think the real problem is investment philosophy. A better comparison that highlights that is Facebook, in 2004 Facebook raised 500k USD with less than a million users and zero or close to zero revenue. The article that compares venture investing to funding whaling expeditions clearly outlines how venture investing works and I think more people need to read it.
Investors that value companies based on revenues, EBIT, and other typical PE metrics will struggle with the financials behind raises like Kuda. I think it's a good thing because it creates an opportunity to educate and possibly increase the number of people writing checks.
I agree with your assertion that Venture firms pay for a piece of the future value of a company. While that is true, it is also true that the banks you compared Kuda to managed to grow while being profitable. A counter argument could be, so why isn't Kuda trying to do the same to some extent. I think the real problem is investment philosophy. A better comparison that highlights that is Facebook, in 2004 Facebook raised 500k USD with less than a million users and zero or close to zero revenue. The article that compares venture investing to funding whaling expeditions clearly outlines how venture investing works and I think more people need to read it.
Investors that value companies based on revenues, EBIT, and other typical PE metrics will struggle with the financials behind raises like Kuda. I think it's a good thing because it creates an opportunity to educate and possibly increase the number of people writing checks.