Tech startups come up with some creative definitions for 'profitable'

San Francisco

LAST September, SpoonRocket was running out of money. Founders of the Berkeley, California meal-delivery company had initially sold investors on aggressive expansion plans and the promises of a high-growth business. By the time it completed a planned rollout to San Diego and Seattle early last year, the funding environment had changed; venture capitalists (VCs) had begun to prioritise profit over growth.

After just a few months, SpoonRocket retreated from its new markets and focused on improving the economics of its business. "For a long time, we were like, 'Let's get profitable; let's get profitable; let's show the margin can get profitable'," said Anson Tsui, co-founder and chief technical officer.