2 Super Software Stocks Down 37% and 57% You’ll Regret Not Buying on the Dip

Theoretically, they can cut those operating costs once the business achieves scale, which would swing the business into profitability. Investors supported that strategy for years — from venture capitalists at the start-up phase, to everyday investors after an initial public offering. The cost of capital skyrocketed, and investors pulled away from tech companies that were losing money, fearing they wouldn't be able to attract further cash infusions.