In my opinion, there are some problems with this premise. Even though a company is profitable, it may have negitve cash flow, and need to raise money. Then there is the oppertunity cost, say you make a better mousetrap, but I raise all the money. I can buy you, and still make more. There have always been ways to start a company without investment, I started a company with $10,000 and sold it two years later for $1MM, and that was in 1986 without any internet! I dont think the writter of this article has thought this through, too many holes. David Schulhof