

Ask HN: where can I find a list of profitable startups? - kal00ma

When doing a job search I've had luck applying to recently funded companies.  However, I would also be interested in finding startups to work for that are actually profitable.  Has anyone stumbled upon a list, or could this be a project that someone is interested in taking on?
======
euroclydon
My understanding is that there's really no point in a funded startup being
profitable. The whole idea is to take in outside money and grow. So,
profitable startups are either not very robustly funded (think lean or
unfunded) or no longer startups.

Now I have a strange interest in startups and companies who are hiring. I love
to see how talented and hardworking people are choosing to engage the market.
I actually almost wouldn't mind being a technically competent stealth
recruiter.

The late couple of times there's been a "Who'd hiring" thread on HN, I've
posted a gig on CL trying to find someone to organize the companies for me in
a spreadsheet by location and industry, not because I intend to take any
action with it, but simple so I can absorb the information at a glance.

~~~
BrandonMTurner
This is not quite true. There is still reason to take funding when a startup
is profitable, and it happens all the time. Off the top of my head:

1) Not making enough money to scale according to future demand

2) Want to move into country which is usually costly

3) Strategic investor that the money is nice, but really the deal is done to
get the connection

4) Want to enter a new industry or release a new product

5) Want to acquire some some technology (could be a company, product, patents,
etc...)

6) Fear of a larger company moving in and attempting to take out the startup

7) Profits are simply not enough to to sustain growth that would allow you to
make multiples of current profits

8) Legal troubles in the near future that are believed by the investors and
CEO to survivable

One thing to remember to think about while job seeking is that you likely will
make less money off an exit if you join a company that is breaking even or
making a profit. The people most rewarded are those that took it from non-
profitable to profitable.

~~~
euroclydon
Thanks. I guess it becomes nuanced from an accounting perspective pretty
quickly, but it would seem that if you spend the injected cash and don't make
it back within a given time frame, then you are no longer profitable.

~~~
ffumarola
Cash flow != profitability

:)

------
anthony_franco
Although it's based on growth rate in terms of revenues, not absolute profits,
the Inc. 5000 list might be of interest

<http://www.inc.com/inc5000/list/2011/category/internet>

~~~
kal00ma
And the top performer is a members-only designer-goods retailer (ideeli)? In
this economy? Incredible.

~~~
aymeric
A friend has done something similar in Australia and is doing incredibly well
too.

This model works.

