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I think about this question a lot because and will eventually write something longer-form on it, but here's a short summary that builds on what others have said
by nlh 11y ago
I think about this question a lot because and will eventually write something longer-form on it, but here's a short summary that builds on what others have said:
It's not that startups "need to grow quickly" -- when VCs say that, they're coming at it from the wrong perspective, and it's a source of a lot of confusion. It's that a good idea WILL grow quickly if you let it, and what you NEED to do is not get in the way of the natural growth of an explosively successful idea.
The perfect model that (most) VCs are trying to match is Facebook, Instagram, or WhatsApp. A new innovative product that takes the world by storm and relatively quickly monetizes into something worth $billions.
VCs want the next Facebook/Instagram/WhatsApp. That's why they're giving you $millions, and they know 9 out of 10 shots aren't going to hit. Because of the way VCs frame their desire for success, it's often confusing to folks on the frontlines and they hear it as "your mission is growth" vs. "your mission is to build something everyone on earth wants and then give it to them quickly."
Rapid growth is almost more a RESULT of a successful startup than it is a pathway. It's a symptom, not a task.
So what investors mean when they say "you need to grow quickly!" is more like: "We want to see you growing quickly, because that's a sign to us that you've hit the nail on the head."
Facebook/Instagram/WhatsApp didn't have growth hacking teams. They didn't sit around saying "We need to stop working on the product and figure out how to grow! grow! grow!" They nailed it, they saw that everyone on earth wanted their product, and they enabled it to happen by not getting in their own way.