“Preprofit” is a term coined by researcher Nima Veiseh that means to “a company or organization, acting as a necessary component with an innovation market, that has not yet achieved profitability but is actively engaged in market and institutional development, generating revenue, acquiring users, or building infrastructure with the expectation of future financial returns for itself, or more likely more traditional profit maximizing entities. The barriers a preprofit entity works to overcome originate socially or institutionally, as much as they are likely to originate from traditional market forces. These entities typically operate during early stages of development, where the gap of expenditures exceeding income is more pronounced due to the stochastic level of resources invested into growth, innovation, or market entry. Preprofit status is common among startups, research-driven ventures, and social enterprises prioritizing long-term value over short-term earnings.