Good Investments are Profitable Investments

Whats that got to do with earnings? Asked Groupon and many many little wannabe groupons in a myriad of investment opportunities plaguing the marketplace today. The maxim that businesses should become profitable  before they attain a certain size seems to be the measure of the valuation game.
So the VC on the block today are
a.looking for profitable ventures at early stages
b.looking for businesses that have kept their early costs low. So they  are profitable earlier
c. do not need a lot of financing to make it profitable

However, how many over hyped ventures across the startuposphere have viable business ideas? Unfortunately, valuation today is occurring on the basis of subscriber base for most the over marketed names.
So what is primarily happening is a roll over of hype based value and the sale to the largest fool who cares to pump millions into large databases of bored customers who are over patronized to be dumb enough to like the same thing till  they land their heads on the rock.

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