A new IPO winter is underway, in which unsubstantiated growth is no longer appreciated: profits matter.

Few companies remain in the IPO class. Either they prove their value through profits or they accept an embarrassing downturn. Pre-IPO stars are now forced to decide whether to reduce their valuation or delay their IPO until market conditions are more favorable. From an investment standpoint, however, finding profitable pre-IPO investments in the future will be much easier after naked swimmers drown in this gravity wave.

Among Starport Capital's investment criteria is investing only in companies that can break even within two years and may also have the clearest path to profitability because of the company's diversified customer base, lower capital costs, and higher scalability of cash generation.