Novatti - The $1 party, page-3654

It's the nature of the business style that sunken costs are required to produce growth. they have to spend this money upfront in their hope it pans out and growth ensues. Emersion and acquiring are fine examples of this.

if an investor sees this as a negative then they probably don't understand an investment in a "growth" company. Investing before an inflection point creates an amazing opportunity if it works out but comes with significant risks of a thesis that doesn't pan out, insolvencies or unforeseen issues. A loss making business is a growth phase is extremely hard to value and determine whether or not it will pan out. I think PC has the right fortitude and leadership with integrity for me to back them.