How can startups with negative operating cashflow since inception have valuations?

[shreyasd@mastodon.social]

How can startups with negative operating cashflow since inception have valuations?

Can they even be considered legitimate businesses?

#Scam #Fraud #Finance #Ponzi #AI #Startups

[mrautio@infosec.exchange]

@shreyasd speculation on future value seems to be the way how people invest. investors pursue high risk (no cashflow), high reward (economies of scale and high future cash flow)

[shreyasd@mastodon.social]

@mrautio
How do one calculate future value when there has never been a single positive cashflow?

[mrautio@infosec.exchange]

@shreyasd i think that is where speculating from investors comes in based on market trends, target market value and so on