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Sure, it "really does pay" so long as you can run a company lean into hypergrowth. Recall the number one reason startups fail is they run out of cash.
by bredren 8y ago
Sure, it "really does pay" so long as you can run a company lean into hypergrowth. Recall the number one reason startups fail is they run out of cash.
- Gabriel_Martin 8y agoAlternately, one could translate that instead to mean the number one reason is unsustainable over-scaling too early is what causes failures, not the lack of cash.
- amvalo 8y agoIsn’t that sort of like saying most humans die because their heart stops beating?
- nine_k 8y agoIn a way. But many startups run out of cash while still growing. It's more like dying from exhaustion while running faster and faster, not a frequent outcome.
- bredren 8y agoAnd running faster and faster or dying is your job if you are raising money from institutional VCs in the first place.
- cwalv 8y agoIt's more like saying most men who die in their 20's die due to excessive risk taking.
- rhizome 8y ago...because funders turn off the spigot.
- IshKebab 8y agoYou mean because they failed to create a profitable business surely?
- bredren 8y agoNope. I am talking about a startup capable of hypergrowth. These do not need to build profitable businesses to exit and they can and do run out of cash.
- deleted 8y ago[deleted]
- parthdesai 8y ago>Recall the number one reason startups fail is they run out of cash. Is it that or is it because a lot of start ups always want to "grow" at all cost? It is be possible to have a small-medium scale business and organically growing it out, but obviously if you take investor money, they want max return in shortest amount of time possible.
- usrusr 8y agoThe VC curse: five funded startups becoming modestly profitable cannot compensate for five failures, but one stellar hypersuccess can compensate for nine duds and more.