Aswath Damodaran disagrees with Vinod Khosla on the scaling vs profitability debate. Here’s why

Aswath Damodaran has challenged Vinod Khosla’s view that companies should prioritise scaling over profitability. Damodaran argues that the right balance depends on factors such as market size, competition, capital intensity and unit economics. He warns that blindly chasing scale can turn small business failures into larger ones and create unsustainable models.

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