Social tech firms are the hot stock for investors these days, yet a look at their balance sheet would put most people off. Sarah Henson talks to Sotirios Paroutis to find out why Twitter and the like are so popular even when they don’t make any money
Traditionally, investors would pore over financial statements looking at revenue and forecasted profits before they would consider backing a start-up.
Investing in a company that was yet to make any money and without any indication of how it planned to monetize itself in the future, would be seen as a huge risk.