Prioritizing growth over profitability is crucial for the success of startups, as it is the only true indicator of product market fit and essential for IPO success.

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  The talk is about the importance of growth over profitability in startups.
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  Growth is the only true signal of product market fit and what differentiates a startup from a small business.
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  A startup is a consistently growing and revenue-generating company that reinvests profits into innovation and user satisfaction, unlike a stable business that simply maintains its current state.
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  To demonstrate profitability, show a track record of growth and a compelling story of how the business will be profitable at scale.
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  Invest time in refining your story and doing some calculations and simulations to ensure realistic margins, especially at the seed stage.
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  Demonstrate profitability and scalability with examples, but avoid constantly increasing margins as the burden of proof will become higher as the company grows.
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  For IPO success, growth is crucial to demonstrate product market fit and profitability cannot be substituted.
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  Continuously update your profitability model, consider real-world edge cases, and focus on margin growth over time while still prioritizing growth.