Spending Phase

Companies have lifecycles. Sorta like people. And helmetless skateboarders.

In the early stages of building a company, lots of spending happens. Investors invest, funding whatever capital needs are prescient. In the case of Google, only about $15 million of capital was actually needed to have ended up producing a highly profitable, nearly trillion dollar value company. (Other financial rounds were raised, but the comapny really didn't tap into the extra capital.)

Uber and Tesla live at the opposite end of the spending phase, as they will have burned tens of billions of dollars before becoming profitable. It's all part of the natural growth curve. But if you do go into a business that needs a lot of capital...be sure to wear a helmet.