I'm not a startup founder but my take is that companies will grow to a certain size as they progress from (hopefully) smaller space to bigger space at a co-lo s

I'm not a startup founder but my take is that companies will grow to a certain size as they progress from (hopefully) smaller space to bigger space at a co-lo space. Once they hit a certain size they either fold or end up moving to a bigger space as it no longer makes sense to pay the high price of co-lo spaces if you are in high growth mode. Am I way off the mark?