Internet advertising companies... Help me out here

Discussion in 'Chit Chat' started by Comptalk, Mar 29, 2007.

  1. OK, I am reviewing some companies such as 24 / 7 Real Media, Mama, Yahoo!, and Google. All of these companies have been around for almost the same time. Yet the first two have yet to make a penny. There revenue grows, but they still cannot make a cent. Isn't there something wrong with this? Other upcoming companies such like Right Media, Revenue Science, and others get 50 million dollars or more in VC funding, yet they still need more funding to keep afloat. After three or four (or more) years and they still need more money in order to continue, why are they still getting more money? I am trying to understand the logic in funding companies that either will never be profitable or just keep on loosing money. If you have millions of dollars coming in through revenue and you still need MORE millions in outside funding, it does not seem your business is sound. You can have a hundred million dollars in revenue, but still need outside investors? Am I missing something here?