It's like with modern husbandry: you can make money selling milk, eggs and meat by sustainably raising animals living comfortable lives, but you can make more money by sticking them in cages, pumping them up with antibiotics and optimized fodder, to maximize production rates and minimize costs. The two approaches are inherently incompatible with each other. And I dare to say, modern startup ecosystem kind of entered the era of "factory farming" some time ago now.
It’s unsustainable in that the profit is a one time event, but that doesn’t mean you’re not to turn cash into something worth more than what you spent and then sell that thing.
Cooking books and falsifying projections is fraud.
Asking for investments with a clear disclaimer that the goal is a social good that won’t be profitable? If that’s fraud, then every major arts institution everywhere is guilty.
But an actual investment isn’t “investing in our community” it’s asking for money in exchange for to potential to gain more money etc.
