How do start ups make money without advertisement?
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How would a start up company for mobile apps and web apps make money if they have free services and/or does not sell any advertisement? Companies such as: http://www.6wunderkinder.com http://www.atthepool.com and any other free and useful apps out there? http://www.twitter.com was free and then just recently they started selling advertisements to businesses. How did they run without making money for awhile?
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Answer:
They don't make money. They raise funding and build a product to reach the point of profitability or acquisition. Raising funding means someone puts money into the company's bank account to fund its operations until it becomes self-sustaining. If that fails, the company either raises more money, finds other revenue streams, gets sold, or shuts down.
Leonid S. Knyshov at Quora Visit the source
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