Our data would say that this is a false assumption. Investors are less concerned with sustained profitability if they believe you have a viable plan for future growth. If you are not putting a believable plan for growth, then, yes, they will most likely hold your feet to the fire on profitability.
In “Zone to Win: Organizing to Compete in an Age of Disruption,” Geoffrey Moore (author of “Crossing the Chasm”) recommends that management teams make three moves with investors during the transition. Here is our take on those three moves as it relates to XaaS.