5 Reasons Startups Need Revenue As Well As Users

Some analysts argue that revenue drives growth, while others say user growth drives revenue. Both have worked. Google reached $1B in revenue within five years of incorporation, and now has a market capitalization of over $400B. Twitter showed no focus on revenue in the first five years, but was able to parlay 500M users into a $22B public company, now growing revenue.

Every startup dreams of achieving that milestone, when they can focus more on scaling the business and enjoying their earnings, rather than fighting for another investment infusion. Most are still confused about the right priority. Should they focus on increasing revenues and profitability, or entice more and more users with "free" services, to increase their valuation.